I really need help with number 6. Monthly cash budgets

Near the end of 2017, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2017 DIMSDALE SPORTS CONPANY Estimated Balance Sheet December 31, 2017 Assets 36,000 525% 000 150,000 Cash Accounts receivable Inventory $ 711,000 Total current assets Equipment Less: accumulated depreciation Equipment, net 540,000 67,500 472,500 Total assets $1,183,500 Liabilities and Equity Accounts payable Bank loan payable Taxes payable (due 3/15/2018) Total liabilities $360,000 15,000 90,000 465,000 Common stock 472,500 246,000 Retained earnings Total stockholders' equity 718,500 $1,183,500 Total liabilities and equity To prepare a master budget for January, February, and March of 2018, management gathers the following information. a. The company's single product is purchased for $30 per unit and resold for $55 per unit. The expected inventory level of 5,000 units on December 31, 2017, is more than management's desired level, which is 20 % of the next month's expected sales (in units)." Expected sales are: January, 7,000 units; February, 9,000 units; March, 11,000 units; and April, 10,000 units. b. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 60 % is collected in the first month after the month of sale and 40 % in the second month after the month of sale. For the December 31, 2017, accounts receivable balance, $125,000 is collected in January and the remaining $4o0,000 is collected in February. c. Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80 % in the second month after the month of purchase. For the December 31, 2017, accounts payable balance, $80,000 is paid in January and the remaining $280,000 is pald in February. d. Sales commissions equal to 20 % of sales are paid each month. Sales salaries (excluding commissions) are $60,000 per year. e. General and administrative salaries are $144,000 per year. Maintenance expense equals $2,000 per month and is paid in cash. f. Equipment reported in the December 31, 2017, balance sheet was purchased in January 2017. 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, $36,000; February, $96,000; 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. g. The company plans to buy land at the end of March at a cost of $150,000, which will be paid with cash on the last day of the month. h. 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 $25,000 at the end of each month. i. The income tax rate for the company is 40 % . Income taxes on the first quarter's income will not be paid until April 15. Calculate the budgeted cash receipts and cash payments. (Negative values should be Indicated with minus sign.) Calculation of Cash receipts from customers: January February March Sales in units 7,000 9,000 55.00 $ 495,000 $ 11,000 55.00 Selling price per unit Total budgeted sales 55.00 385,000 605,000 Cash sales 96,250 288,750 $ 25% 123,750 151,250 Sales on credit 371,250 $ 75% 453,750 --Collected in March 31 Total January February March Receivable Accounts Receivable- January 1 525,000 $ 125,000 400,000 Credit sales from: January 288,750 February 371,250 0 March 453,750 0 Total collection of receivables 125,000 $ 400,000 $ Total cash receipts from customers January February March Current month's cash sales Collections of receivables Calculation of payments for merchandise: February March January 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 March 31 ---Paid in--- Payable March February Total January 80,000 $ 280,000 360,000 $ Accounts Payable- January 1 Merchandise purchases in: $ C January 0 February 0 March 0 80,000 S 280,000 $ $ Total cash paid for merchandise Required: Prepare a master budget for each of the first three months of 2018; 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, 2018