I am really confused about question 6 and question 8

Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31 DIMSDALE SPORTS COMPANY Balance Sheet December 31 Assets Cash $ 21,500 Accounts receivable 520,000 Inventory 150,000 Equipment $ 612,000 Less: Accumulated depreciation 76,500 535,500 Total assets 1,227,000 Liabilities and Equity Liabilities Accounts payable $ 350,000 Loan payable 14,000 Taxes payable (due March 15) 91,000 455,000 Equity Common stock $ 474,500 Retained earnings 297,500 772,000 Total liabilities and equity 1,227,000 To prepare a master budget for January February, and March, use the following information a. The company's single product is purchased for $30 per unit and resold for $56 per unit. The inventory level of 5,000 units on December 31 is more than management's desired level, which is 20% of the next month's budgeted sales units. Budgeted sales are January, 2250 units: February 9.500 units; March 10,750 units, and April 9.000 units. All sales are on Credit b. Cash receipts from sales are budgeted as follows: January, $262.100, February $74279, March $524.559 C Cash payments for merchandise purchases are budgeted as follows: January, $65.000, February $309.900; March $158.100 d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries fexcluding commissions) are $7,000 per month e. General and administrative salaries are $12,000 per month Maintenance expense equals $2,000 per month and is paid in cash New equipment purchases are budgeted as follows January, $38,400: February, 5100,800, and March $24.000 Budgeted depreciation expense is January, 56,775, February 57825, and March $8.075 9. The company budgets a land purchase at the end of March at a cost of $165.000, which will be paid with cash on the last day of the month h. The company has an agreement with its bank to obtain additional loans as needed. The interest rate is 15 per month and interest is paid at each month-end based on the beginning-month balance. Partial or full payments on these loans are made on the last day of the month. The company maintains a minimum ending cash balance of $21.500 at the end of each month 1. The income tax rate for the company is 39%. Income taxes on the first quarter's income will not be paid untl April 15 Required: Prepare a master budget for the months of January, February, and March that has the following budgets: 1. Sales budgets 2. Merchandise purchases budgets 3. Selling expense budgets 4. General and administrative expense budgets Hint Depreciation is included in the general and administrative budget for merchandisers 5. Capital expenditures budgets, 6. Cash budgets 7. Budgeted income statement for entire quartet (not monthly ended March 31, 8. Budgeted balance sheet as of March 31 Sales budgets Budgeted sales units Selling price per unit Total budgeted sales DIMSDALE SPORTS Sales Budget January February 7,250 $ 9,500 56 $ 56 $ $ 406,000 $ 532,000 $ March Totals 10,750 27,500 56 $ 56 602,000 $ 1,540,000 el Chandise purchases budgets. DIMSDALE SPORTS Merchandise Purchases Budget January February 7.250 9,500 Total March 10.750 9,000 Budgeted sales units Add: Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Lose: Beginning inventory units Units to be purchased Cost per unit Cost of merchandise purchases 9,500 20% 1,900 9,150 5,000 4,150 30 $ 124,500 $ 10.750 20% 2,150 11,650 1,000 9.750 30s 292,500 5 20% 1,800 12,550 2,150 10,400 30 $ 312,000 $ $ $ 24,300 30 729.000 Selling expense budgets Total DIMSDALE SPORTS Selling Expense Budget January February $ 406.000 $ 532,000 $ 20% B1,200 100,400 7.000 7,000 $ 88,200 $ 113.400 $ Budgeted sales Sales commission percent Sales commissions Sales salaries Total selling expenses 20% March 802,000 20% 120.400 5 7.000 127400 $ 308,000 21,000 329,000 General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget for merchandisers DIMSDALE SPORTS General and Administrative Expense Budget January February March Total General and administrative salaries 12,000 $ 12,000 $ 12,000 $ 36,000 Depreciation 8.775 7.825 8,075 22,675 Maintenance 2,000 2,000 2000 6,000 Total general and administrative expenses $ 20,775 $ 21.825 $ 22,0755 64,675 Required: Required 2 Required Required 4 Required 5 Required 6 Required 7 Required B Capital expenditures budgets. Equipment purchases Land purchase Total capital expenditures DIMSDALE SPORTS Capital Expenditures Budget January February March 38.400 $ 100,000 $ 24,000 $ O $ 0 165,000 $ 38,400 $ 100,800 $ 189,000 3 Total 163,200 165,000 328,200 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required B Cash budgets. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar) March 272,939 524.559 797 498 es DIMSDALE SPORTS COMPANY Cash Budget January February Beginning cash balance $ 21,500 5 63,860 $ Add: Cash receipts from sales 262,100 747,179 Total cash available 283,600 811.039 Less: Cash payments for Merchandise purchases 65,000 309,900 Sales commissions 81,200 106,400 Sales salaries 7.000 7.000 General and administrative salaries 12.000 12.000 Loan interest 140 0 Purchases of equipment 38,400 100.800 Purchase of land 0 0 Maintenance 2,000 2.000 Taxes 0 0 158,100 120.400 7,000 12.000 0 24,000 165,000 2,000 488,500 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 205,740 77,860 (14,000) 63,860 $ 538,100 272,939 0 272,939 o $ March Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Loan balance January February $ 14,000 $ 0 (14,000) 0 5 0 $ 0 ebook Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Bequired 7 Required Budgeted income statement for the entire first quarter (not for each month), (Round your final answers to the nearest whole dollar) References $ 1,540,000 B25,000 715,000 DIMSDALE SPORTS COMPANY Budgeted Income Statement For Three Months Ended March 31 Sales Cost of goods sold Gross profit Selling general and administrative expenses Sales commissions expense $ 308,000 Sales salaries expense 21,000 General administrative salaries expense 36,000 Loan interest expense Maintenance expense 6,000 Depreciation expense 22,675 140 Total operating expenses Income before income taxes income taxes expense 393,815 321.185 125.262 $ 195,923 Net Income Required B Required 1 Required 2 Required 3 Required 4 Required Required 6 Required Budgeted balance sheet as of March 31. (Round your final answers to the nearest whole dollar) DIMSDALE SPORTS COMPANY Budgeted Balance Sheet March 31 Assets 0 Total assets Liabilities and Equity Liabilities 0 Equity 0 Total Liabilities and Equity