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, 2019 Assets Cash $36,500 Nccounts receivable 520.000 Inventory 157.500 Total current assets 714.000 ruipent 364,000 Lasst Accumulated depreciation 70.500 Equipment, net $1,207,500 Total asset Liabilities and Equity Accounts payable 5355,000 Hank loan payable 13,000 Taxe payable due 3/15/2020) 92.000 Total liabilities 5 459,000 Common stock 472,000 Netained earnings 276,500 Total stockholders' equity 743,500 Total liabilities and equity $1,207,500 To prepare a master budget for January, February, and March of 2020, management gathers the following information year. a. The company's single product is purchased for $30 per unit and resold for $57 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 7,000 units: February, 8.500 units: March, 11,000 units, and April, 9.500 units b. Cash sales and credit sales represent 20% and 80%, respectively, of total sales of the credit sales, 63% is collected in the first month after the month of sale and 37% 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 5395,000 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 $290,000 is paid in February 2020, d. Soles commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $84,000 per a. General and administrative salaries are $144.000 per year. Maintenance expense equals $2,300 per month and is paid 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, $93.600; and March. $21,600. 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 and at the end of March at a cost of $150,000, 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 $16.000 at the end of each month . The income tax rate for the company is 37%. Income taxes on the first quarter's income will not be paid until April 15. in cash Required: Prepare a master budget for each of the first three months of 2020, include the following component budgets. Calculation of Cash receipts from customers Si in unit Seing propert Total budgeted 20% 30 Se on credit Collected in February 125.000 $ 395.000 March Accounts Receivable January $ 520,000 $ $ 0 Cred sales from January February March Total collection of receivables 5 125,000 $ 395,000 $ Ols Total cash receipts from customer 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 Total 355.000 5 Fabruary 65,000 $ 200,000 5 $ 0 Accounts Payable January 1 Merchandise purchases in January February March Total cash paid for merchandise 0 0 $ 65.000 290,000 $ Required 4 Required 5 Required 6 Required 6 Calc Cash Bud Required 7 Required 2 Required 3 Required 1 Required a 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 2020 January February March Beginning cash balance Total cash available Cash payments for 0 Total cash payments Preliminary cash balance Ending cash balance Loan balance January February March Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Required 6 Calc Required 6 Cash Bud Required 1 Required 7 Required 8 Required 3 Required 4 Required 5 Required 2 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 0 Required 6 Calc Required 6 Cash Bud Required 7 Required 8 Required 1 Required 2 Required 3 Required 4 Required 5 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 Assets Total current assets 0 Equipment, net Total assets Llabilities and Equity Liabilities Bank loan payable Total liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity