Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019, DIMSDALE SPORTS COMPANY Estimated Balance sheet December 31...2019 Assets Cash Accounts receivable Inventory Total current aseta Equipment Leon Accumulated depreciation Equipment, bet Total anset Liabilities and Equity Accounts payable Bank loan payable $36,500 520,000 157,500 $ 714,000 600,000 75,000 325,000 31,239,000 Taxes payable (due 3/15/2020) $360,000 12,000 92,000 Total liabilities Common stock $ 464,000 471,500 303,500 Detained earnings Total stockholders equity Total liabilities and equity 775,000 $1,233,000 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 $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 7,000 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, 565,000 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 51.900 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, $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 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 5 Required 6 Required 6 Calc Cash Bud Required 7 Required Monthly sales budgets. DIMSDALE SPORTS CO. Sales Budget For January, February, and March 2020 Budgeted Unit Budgeted Budgeted Total Sales Unit Price Dollars January 17,000 5 405,000 February 9.000 522.000 March 10.750 58 623,500 Totals for the quarter 26.750 1,551.500 883 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 Calc Required 7 Required 8 Cash Bud Monthly merchandise purchases budgets. DIMSDALE SPORTS CO. Merchandise Purchases Budget January, February, and March 2020 January February 9,000 10.750 March 20% 20% 1.800 Next month's budgeted sales (units) Ratio of inventory to future sales Budgeted ending Inventory (units) Beginning inventory (units) Required units of available merchandise Beginning inventory (units) Units to be purchased 10,500 20% 2,100 10.750 12,850 (2.100) 2,150 9,000 11.150 (2,150) 7,000 8.800 (1.800) Complete this question by entering your answers in the tabs below. 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 March Total 623,500 Selling Expense Budget January, February, and March 2020 January February 406,000 622,000 $ 20% 20% B1,200 104.400 24,000 24,000 105.2005 128.4005 Budgeted sales Sales commission percent Sales commissions Sales salaries Total budgeted selling expenses 20% 124,7005 310,300 24,000 72.000 148,700 382 300 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required Required 6 Required 6 Calc Cash Bud Required 7 Required 8 Monthly general and administrative expense budgets. Equipment beginning of month Equipment purchases Equipment and of month Monthly depreciation exponso January February March $ 600,000 $ 640,800 $ 741,600 40,000 100,000 28.400 $ 640,800 $ 741,600 $ 768,000 DIMSDALE SPORTS CO, General and Administrative Expense Budget January, February, and March 2020 January February March Salaries expense Maintenance expense Total 96,000 1,900 97,900 $ 96.000 1,900 97,900 $ 96.000 288,000 1.900 5,700 97,900 $ 293,700 $ 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 Cash Bud Calc Required 7 Required B Monthly capital expenditures budgets. DIMSDALE SPORTS COMPANY Capital Expenditures Budget January, February, and March 2020 January February 40,000 $ 100,800 155,000 $ 155,000 195,800 $ 255,800 March Equipment purchases Land purchase Total 168,000 Total 26.400 $ 155,000 181,400 $ $ 465.000 633,000 Complete this question by antering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 6 Calc Cash Bud Required 7 Required 8 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 customern: January February March Sales in units Selling prion per unit Total budgeted sites Cash sales 20% 80% Sales on Credit Collected in March 31 March Receivable Accounts Receivable January Total January February 520.000 $ 120,000 $ 400,000 1 $ Credil sales from January February March Total collection of receivables $ 120,000 $ 400,00 Os Total cash receipts from customers January February March Collections of cells Calculation of payments for merchandise January February March Desired ending inventory (und) Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 6 Calc Cash Bud Required 7 Required 8 Budgeted Income statement for the entire first quarter (not for each month). (Round your fina 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 $ O Required 6 Cash Bud Required 3 >