Near the end of 2019, the management of Dimsdale Sports Co , a merchandising company, prepared the following estimated balance sheet for December 31, 2019 Estimated Balance Sheet Assets Cash $ 36,500 Accounts receivable 520,000 Inventory 105,000 Total current assets $ 661,500 Equipment 612,000 Less Accumulated depreciation 76,500 Equipment, net 535,500 Total assets $ 1,197,000 Liabilities and Equity Accounts payable $ 375,000 Bank loan payable 12,000 Taxes payable (due 3 15 2020) 89,000 Total liabilities $ 476,000 Common stock 474,500 Retained earnings 246,500 Total stockholders equity 721,000 Total liabilities and equity $ 1,197,000 To prepare a master budget for January, February, and March of 2020, management gathers the following information The companys single product is purchased for $20 per unit and resold for $57 per unit The expected inventory level of 5,250 units on December 31, 2019, 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, 9,500 units March, 10,750 units and April, 10,000 units 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, $120,000 is collected in January 2020 and the remaining $400,000 is collected in February 2020 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, $65,000 is paid in January 2020 and the remaining $310,000 is paid in February 2020 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 $2,000 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, $33,600 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 $160,000, 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 $19,000 at the end of each month The income tax rate for the company is 39 Income taxes on the first quarters income will not be paid until April 15 Monthly capital expenditures budgets 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 $375,000 $65,000 $310,000 Merchandise purchases in January $0 February 0 March 0 Total cash paid for merchandise $65,000 $310,000 $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 )

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Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019. Estimated

Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019.

Estimated Balance Sheet
Assets
Cash	$	36,500
Accounts receivable		520,000
Inventory		105,000
Total current assets			$	661,500
Equipment		612,000
Less: Accumulated depreciation		76,500
Equipment, net				535,500
Total assets			$	1,197,000
Liabilities and Equity
Accounts payable	$	375,000
Bank loan payable		12,000
Taxes payable (due 3/15/2020)		89,000
Total liabilities			$	476,000
Common stock		474,500
Retained earnings		246,500
Total stockholders equity				721,000
Total liabilities and equity			$	1,197,000

To prepare a master budget for January, February, and March of 2020, management gathers the following information.

The companys single product is purchased for $20 per unit and resold for $57 per unit. The expected inventory level of 5,250 units on December 31, 2019, 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, 9,500 units; March, 10,750 units; and April, 10,000 units.
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, $120,000 is collected in January 2020 and the remaining $400,000 is collected in February 2020.
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, $65,000 is paid in January 2020 and the remaining $310,000 is paid in February 2020.
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 $2,000 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, $33,600; 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 $160,000, 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 $19,000 at the end of each month.
The income tax rate for the company is 39%. Income taxes on the first quarters income will not be paid until April 15.

Monthly capital expenditures budgets.

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	$375,000	$65,000	$310,000
Merchandise purchases in:
January					$0
February					0
March					0
Total cash paid for merchandise		$65,000	$310,000	$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.)