I need help with this I don't understand this question.

Near the end of 2019, the management of Dimsdale Sports Co. a merchandising company, prepared the following estimated balance sheet for December 31. 2019. IJIHSDALE SPORTS {2um Estimated Halance Sheet December 31, 2019 assets Cash $ 35.599 Accounts receivable 529,899 Inven to ry 95 . 899 Total current assets is 659,598 Equipment 528. 899 Less: Accumulated depreciation M EquipmentJ net M Total assets $1,112,598 Liabilities and Equity Accounts payable $369,899 Bank loan payable 13.899 Taxes payable {due 3!15f2928} 88,899 Total liabilities $ 461,998 Common stock 421.899 Retained earnings M Total stockholders' equity M Total liabilities and equity $1,112,598 To prepare a master budget for January, February, and March of 2020, management gathers the following information. a. The company's single product is purchased for $20 per unit and resold for $5? per unit. The expected inventory level of 4,250 units on December 31. 2019, is more than management's desired level, which is 20% of the next month's expected sales [in units). Expected sales are January. 1500 units; February. 9,000 units: March. 10,?50 units: and April, 11,000 units. b. Cash sales and credit sales represent 20% and 30%. respectively, of total sales. Of the credit sales, 52% is collected in the rst month after the month of sale and 43% in the second month after the month of sale. For the December 31, 2019, accounts receivable balan ce. $12 5,000 is collected in January 2020 and the remaining $395,000 is collected in February 2020. c. Merchandise purchases are paid for as follows: 20% in the rst month after the month of purchase and 30% in the second month alter the month of purchase. For the December 31, 2019, accounts payable balance. $60,000 is paid in January 2020 and the remaining $300,000 is paid in February 2020, . __.___J _____ ------a -r.--- -- r- "- Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions} are $90,000 per year General and administrative salaries are $144,000 per year. Maintenance expense equals $1,900 per month and is paid in cash. Equipment reported in the December 31, 2019, balance sheet was purchased in January 2019. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $33,400: February, $103,200; and March. $28,800. This equipment will be depreciated under the straight- line method over eight years with no salvage value. A full month's depreciation is taken for the month in which equipment is purchased. The company plans to buy land at the end of March at a cost of $145,000, which will be paid with cash on the last day of the month. The company has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $23,000 at the end of each month. I. The income tax rate for the company is 43%. Income taxes on the first quarter's income will not be paid until April 15. 9-1\"?- .3"? Requlred: Prepare a master budget for each of the rst three months of 2020; include the following component budgets. 1. Monthly sales budgets. 2. Monthly merchandise purchases budgets. 3. Monthly selling expense budgets. 4. Monthly general and administrative expense budgets. 5. Monthly capital expenditures budgets. 6. Monthly cash budgets. 7. Budgeted income statement for the entire first quarter (not for each month). 8. Budgeted balance sheet as of March 31, 2020. \fCalculate the budgeted cash receipts and cash payments. (Negative values should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Calculation of Cash receipts from customers: January February March Sales in units Selling price per unit Total budgeted sales Cash sales 20% Sales on credit 80% -Collected in--. March 31 Total January February March Receivable Accounts Receivable - January $ 520,000 $ 125,000 $ 395,000 Credit sales from: January February 0 March 0 Total collection of receivables $ 125,000 $ 395,000 $ $ 0 Total cash receipts from customers January February March Collections of receivables Calculation of payments for merchandise:Calculation of payments for merchandise: January February March Desired ending inventory (units) Budgeted sales in units Total units required Beginning inventory (units) Number of units to be purchased Cost per unit Total cost of purchases -Paid in----. March 31 Total January February March Payable Accounts Payable - January 1 $ 360,000 $ 60,000 $ 300,000 Merchandise purchases in: January 0 February March 0 Total cash paid for merchandise $ 60,000 $ 300,000 $ 0 0DIMSDALE SPORTS CO. Cash Budget January, February, and March 2020 January February March Beginning cash balance 35,500 $ 27,570 $ 174,710 210,500 692,540 503,538 Total cash available 246,000 720, 110 678,248 Cash payments for: Total cash payments 0 0 0 Preliminary cash balance Ending cash balance Loan balance January February March Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month