Near the end of 2017, the management of Dimsdale Sports Co, a merchandising company, prepared the following estimated balance sheet for December 31, 2017 Estimated Balance Sheet r 31, 2017 36,000 525,000 150,000 Cash Accounts receivable Inventory Total current assets Equipment Less accumulated depreciation $ 711,000 540,000 67 500 472.500 Equipment, net Total ansets 1,183,s00 Liabilities and Equity Accounts payable Bank loan payable Taxes payable (due 3/15/2018) Total liabilities Common stock 360,000 15,000 no. 000 465,000 246,000718,500 $1,183,500 72,500 earnings Total stockholders equity 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 b. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 60% is collected in the first units on December31, 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. 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 $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, $80,000 is paid in January and the remaining $280,000 is paid in February