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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, DINSDALE

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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, DINSDALE SPORTS COMPANY Estimated Talance sheet December 31, 2013 Assets Cash $ 16,500 Accounts receivable 520,000 Inventory 157,500 Total current anata 5 716,000 unt 300,000 Lost Mountated depreciation 75,000 olant, bet 525,000 Total ante 11,239,000 Liabilities and Accounts payable $360,000 Bank loan payable 12,000 Taxe payable idee 1/15/2020) 92,000 Total liabilities 366,000 Coronatok 471,500 Retained earnings 503,500 Total stockholders uity 215,000 Total liabilities and equity 51,25,000 To prepare a master budget for January, February, and March of 2020, management gothers the following information a. The company's single product is purchased for $30 per unit and resold for $58 per unit. The expected Inventory level of 5.250 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, 7000 units February 9,000 units; March 10,750 units and April 10,500 units b. 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, 2019, accounts receivable balance $120.000 is collected in January 2020 and the remaining 5400,000 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, $65,000 is paid in January 2020 and the remaining $295,000 is paid in February 2020 d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions are 596,000 per year e. General and administrative salaries are $132.000 per year Maintenance expense equals $1900 per month and is paid in cash 1. 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 540,800 February, 5100,800; and March $26,400. 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 To prepare a master budget for January, February, and March of 2020, management gothers the following information a. The company's single product is purchased for $30 per unit and resold for $58 per unit. The expected Inventory level of 5,250 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, 7000 units; February 9,000 units; March 10,750 units; and April 10,500 units. b. 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, 2019, accounts receivable balance $120,000 is collected in January 2020 and the remaining $400,000 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, $65,000 is paid in January 2020 and the remaining $295,000 is paid in February 2020, d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are 596,000 per year. .. General and administrative salaries are $132.000 per year, Maintenance expense equals $1,900 per month and is paid in cash t. 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, $40,800; February $100,800; and March, $26,400. 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 $155,000, 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 $13,00 at the end of each month, L. The income tax rate for the company is 43%. 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 experse 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 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 with minus sign. Round your final answers to the nearest whole dolor.) Calculation of Cash receipts from customers January Fobruary March Sales in units Selling price per unit Total budgeted sales Cash sales Sales on credit 20% 80% March 31 Collected in Total January February 520.0005 120,000 $ 400.000 March Receivable $ Accounts Receivable - January 1 Crect sales from $ January February March Total collection of receivables ODO $ 120,000 $ 400,000 $ 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 120, Total colection of CIRIOS . 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 March 31 Total January 360.000 $ 65.000 -Pald in February S 295,000 March Payable $ Accounts Payable - January 1 Merchandise purchases in: January February March Total cash paid for merchandise 0 $ 65,000 $ 205.000 $ 0 0 (Required 5 Required Cash Bud > Monthly cash budgets. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Rour your final answers to the nearest whole dollar.) DIMSDALE SPORTS CO. Cash Budget January, February, and March 2020 January February March Beginning cash balance Total cash available Cash payments for Total cash payments Preliminary cash balance 0 Ending cash balance Loan balance January February March Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 6 Cale Cash Bud Required 7 Required B Budgeted Income statement for the entire first quarter (not for each month). (Round your final answers to the nearest whole dollar) DIMSDALE SPORTS CO. Budgeted Income Statement For Three Months Ended March 31, 2020 Operating expenses Total operating expenses $ 0 Required & Cash Bud Required & > Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 6 Cale Cash Bud Required 7 Required 8 Budgeted balance sheet as of March 31, 2020. (Round your final answers to the nearest whole dollar.) DIMSDALE SPORTS CO. Budgated Balance Sheet March 31, 2020 Assets Total current assets 0 Equipment, het Total assets Liabilities and Equity Liabetes Bank loan payable Total liabilities Stockholders' Equity Total Stockholders Equity Total Libes and Equity

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