Near the end of 2019, the management of Dimsdale Sports Co, a merchandising company, prepared the following estimated balance sheet for December 31, 2019 DINSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2018 Assets Cash $ 37,000 Accounts receivable 520,000 Inventory 110,000 Total current assets 667,000 Equipent 624,000 Les Accumulated depreciation 7,000 Equipment, net 546,000 total assets 11,213,000 Liabilities and Equity Accounts payable 135,000 Bank loan payable 14,000 Taxes payable (de 1/15/2020) Total Liabilities 5 461,000 Common stock 473,500 Retained earnings 278,500 Total stockholders' cquity 752,000 Total liabilities and equity 31.211.000 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 $57 per unit. The expected inventory level of 5,500 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 7,250 units; February, 9.250 units; March 10,500 units; and April 10,500 units b. Cash sales and credit sales represent 20% and 80%, respectively, of total sales. Of the credit sales, 61% is collected in the first month after the month of sale and 39% in the second month after the month of sale. For the December 31, 2019, accounts receivable balance. $125,000 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 first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2019, accounts payable balance, $70,000 is paid in January 2020 and the remaining $285,000 is paid in February 2020 d. Sales commissions equal to 20% of sales are paid each month Sales salaries (excluding commissions) are $84,000 per year. e. General and administrative salaries are $132,000 per year. Maintenance expense equals $2000 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, 598,400, and March, $24,000. 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 9. The company plans to buy land at the end of March at a cost of $170,000, 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 $14,000 at the end of each month L. The income tax rate for the company is 39%. Income taxes on the first quarter's income will not be paid until April 15. Required: Prepare a master budget for each of the first 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, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required S Required 6 Required 6 Cale Cash Bud Required 7 Required 8 Monthly sales budgets. DIMSDALE SPORTS CO. Sales Budget For January, February, and March 2020 Budgeted Unit Budgeted Budgeted Total Sales Unit Price Dollara January February Marchi Totals for the quarter Required 2 > Required 1 Required 2 Required 3 Required 4 Required 5 Required Calc Required 6 Cash Bud Required 7 Required B Monthly merchandise purchases budgets. DIMSDALE SPORTS CO. Merchandise Purchases Budget January February, and March 2020 January February 9.250 10,500 2056 20% Next month's budgeted sales (units) Ratio of inventory to future sales March 10,500 20% Required units of available merchandise Units to be purchased Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 6 Calc Cash Bud Required 7 Required 8 Monthly selling expense budgets. DIMSDALE SPORTS COMPANY Selling Expense Budget January, February, and March 2020 January February March Budgeted sales Sales commissions Required 1 Required 2 Required 3 Required Required 5 Required 6 Required 6 Cale Cash Bud Required 7 Required 8 Monthly general and administrative expense budgets. February March January S 624,000 Equipment - beginning of month Equipment purchases Equipment - end of month DIM SDALE SPORTS CO. General and Administrative Expenee Budget January, February, and March 2020 January February March Required 1 Required 2 Required 3 Required a Required 5 Required 6 Required 6 cale Cash Bud Required Regu Monthly capital expenditures budgets, DIM SDALE SPORTS COMPANY Capital Expenditures Budget January, February, and March 2020 January February March Total Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 6 Calc Cash Bud Required 7 Required B Calculate the budgeted cash receipts and cash payments. (Negative values should be indicated volt minus sign. Round your inal answers to the nearest whole dollar) Calculation of Cash receipts from customers: January February March Sales in units Selling price per unit Total budgend sale Cash sales Salon de 20% 30% Collected in Total January February 520,000 5 125,000 $ 395,000 March 31 Receivable March Recounts Receivable January 1 Credil sales from January retruary 0 0 March 5 125.000 5 S Total collection of receivables 395,0005 0 Total cash receipte from customers January February March Collections of males Calculation of payments for merchandi: January February March Dred ending inventory (unis) Budited sales in its Total units required Beginning inventary units) Number of units to be purchased Cospunil Tautosta purchase March 31 Payatile Paid in February 5 205.000 Total January 355,000 $ 70.000 March 1 Acil Payle January Merchand purchases in February 70 000 $ 245.000 Total paid forchandise Coquired Required Cash Bud > Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 6 Calc Cash Bud Req Monthly cash budgets. (Negative balances and Loan repayment amounts (if any) should be in your final answers to the nearest whole dollar.) DIMSDALE SPORTS CO. Caen Budget January, February, and March 2020 January February March Beginning cash balance Total cash available Cash payments for: 0 0 Total cash payments Preliminary cash balance Ending cash balance Loan balance January February March Loan balance Beginning of month Additional loan (loan repayment) Lonn balance - End of month Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required Required 5 Required 6 Required 6 Cash Bud Required 7 Budgeted income statement for the entire first quarter (not for each month). (Round your final answe dollar.) DIMSDALE SPORTS CO. Budgeted Income statement For Three Months Ended March 31, 2020 Operating expenses Total operating expenses 0 O Required 6 Canh Bud Required a > Required 1 Required 2 Required 3 Required Required 5 Required 6 Required 6 Calc Cash Bud Required Required 8 Budgeted balance sheet as of March 31, 2020. Round your final answers to the nearest whole dollar) DIMSDALE SPORTS CO. Budgeted Balance Sheet March 31, 2020 Aseete Total current assets Equipment, nel Total assets Llabilities and Equity Liabilities Bank loan payable Total liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity