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 COMPANY Estimated Balance Sheet December 31, 2017
Assets
Cash	$	36,500
Accounts receivable		520,000
Inventory		157,500
Total current assets				$	714,000
Equipment		564,000
Less: accumulated depreciation		70,500
Equipment, net					493,500
Total assets				$	1,207,500
Liabilities and Equity
Accounts payable	$	355,000
Bank loan payable		15,000
Taxes payable (due 3/15/2018)		92,000
Total liabilities				$	462,000
Common stock		472,500
Retained earnings		273,000
Total stockholders equity					745,500
Total liabilities and equity				$	1,207,500

To prepare a master budget for January, February, and March of 2018, management gathers the following information.

The companys single product is purchased for $30 per unit and resold for $54 per unit. The expected inventory level of 5,250 units on December 31, 2017, is more than managements desired level, which is 20% of the next months expected sales (in units). Expected sales are: January, 7,500 units; February, 8,750 units; March, 10,500 units; and April, 10,500 units.

Cash sales and credit sales represent 20% and 80%, respectively, of total sales. Of the credit sales, 57% is collected in the first month after the month of sale and 43% in the second month after the month of sale. For the December 31, 2017, accounts receivable balance, $120,000 is collected in January and the remaining $400,000 is collected in February.

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, $75,000 is paid in January and the remaining $280,000 is paid in February.

Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $54,000 per year.

General and administrative salaries are $144,000 per year. Maintenance expense equals $2,100 per month and is paid in cash.

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, $38,400; February, $91,200; and March, $26,400. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full months 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 $155,000, 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 $9,000 at the end of each month.

The income tax rate for the company is 43%. Income taxes on the first quarters income will not be paid until April 15.

Calculate 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 1	$520,000	$120,000	$400,000
Credit sales from:
January					$0
February					0
March					0
Total collection of receivables		$120,000	$400,000	$0	$0
Total cash receipts from customers
		January	February	March
Collections of receivables
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	$355,000	$75,000	$280,000
Merchandise purchases in:
January					$0
February					0
March					0
Total cash paid for merchandise		$75,000	$280,000	$0	$0

Monthly 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.)

DIMSDALE SPORTS CO.
Cash Budget
January, February, and March 2018
	January	February	March
Beginning cash balance	$36,500
Cash receipts from customers
Total cash available
Cash payments for:
Merchandise
Purchase of land
Purchases of equipment
General & administrative salaries
Maintenance expense
Sales commissions
Sales salaries
Interest on bank loan
Taxes payable
Total cash payments	0	0	0
Preliminary cash balance
Additional loan (loan repayment)
Ending cash balance
Loan balance
	January	February	March
Loan balance - Beginning of month
Additional loan (loan repayment)
Loan balance - End of month