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Please use same tables so we don't get lost where to put numerical values. Thank you. Dimsdale Sports, a merchandising company, reports the following balance
Please use same tables so we don't get lost where to put numerical values. Thank you.
Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31. $ 21,000 520,000 142,500 567,000 $ 1,250,500 DIMSDALE SPORTS COMPANY Balance Sheet December 31 Assets Cash Accounts receivable Inventory Equipment $ 648,000 Less: Accumulated depreciation 81,000 Equipment, net Total assets Liabilities and Equity Liabilities Accounts payable $ 350,000 Loan payable 13,000 Taxes payable (due March 15) 88,000 Equity Common stock $ 472,500 Retained earnings 327,000 Total stockholders' equity Total liabilities and equity $ 451,000 799,500 $ 1,250,500 To prepare a master budget for January, February, and March, use the following information. a. The company's single product is purchased for $30 per unit and resold for $59 per unit. The inventory level of 4,750 units on December 31 is more than management's desired level, which is 20% of the next month's budgeted sales units. Budgeted sales are January, 6,500 units; February, 9,000 units; March, 11,000 units; and April, 10,500 units. All sales are on credit. b. Cash receipts from sales are budgeted as follows: January, $240,050; February, $718,055; March, $526,133. c. Cash payments for merchandise purchases are budgeted as follows: January, $70,000; February, $301,300; March, $141,600. d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $6,500 per month. e. General and administrative salaries are $13,000 per month. Maintenance expense equals $1,800 per month and is paid in cash. f. New equipment purchases are budgeted as follows: January, $38,400; February, $96,000; and March, $26,400. Budgeted depreciation expense is January, $ 7,150; February, $8,150; and March, $8,425. g. The company budgets a land purchase 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 an agreement with its bank to obtain additional loans as needed. The interest rate is 1% per month and interest is paid at each month-end based on the beginning-month balance. Partial or full payments on these loans are made on the last day of the month. The company maintains a minimum ending cash balance of $21,000 at the end of each month. i. 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 the months of January, February, and March that has the following budgets: 1. Sales budgets. 2. Merchandise purchases budgets. 3. Selling expense budgets. 4. General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget for merchandisers. 5. Capital expenditures budgets. 6. Cash budgets. 7. Budgeted income statement for entire quarter (not monthly) ended March 31. 8. Budgeted balance sheet as of March 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Sales budgets. DIMSDALE SPORTS Sales Budget March Totals January 6,500 February $ 9,000 11,000 26,500 Budgeted sales units Selling price per unit Total budgeted sales $ 59 $ 59 $ 59 $ 59 $ 383,500 $ 531,000 $ 649,000 $ 1,563,500 Required: Prepare a master budget for the months of January, February, and March that has the following budgets: 1. Sales budgets. 2. Merchandise purchases budgets. 3. Selling expense budgets. 4. General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget for merchandisers. 5. Capital expenditures budgets. 6. Cash budgets. 7. Budgeted income statement for entire quarter (not monthly) ended March 31. 8. Budgeted balance sheet as of March 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Merchandise purchases budgets. DIMSDALE SPORTS Merchandise Purchases Budget January February 6,500 9,000 March 11,000 Budgeted sales units Calculation of Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Add: Desired ending inventory Total required units Less: Beginning inventory units Units to be purchased Cost per unit Cost of merchandise purchases Required: Prepare a master budget for the months of January, February, and March that has the following budgets: 1. Sales budgets. 2. Merchandise purchases budgets. 3. Selling expense budgets. 4. General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget for merchandisers. 5. Capital expenditures budgets. 6. Cash budgets. 7. Budgeted income statement for entire quarter (not monthly) ended March 31. 8. Budgeted balance sheet as of March 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Selling expense budgets. DIMSDALE SPORTS March Total Selling Expense Budget January February $ 383,500 $ 531,000 20% 20% $ 649,000 Budgeted sales Sales commission percent Sales commissions 20% 76,700 106,200 Sales salaries 6,500 83,200 6,500 112,700 129,800 $ 6,500 136,300 $ 312,700 19,500 332,200 Total selling expenses $ $ $ Required: Prepare a master budget for the months of January, February, and March that has the following budgets: 1. Sales budgets. 2. Merchandise purchases budgets. 3. Selling expense budgets. 4. General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget for merchandisers. 5. Capital expenditures budgets. 6. Cash budgets. 7. Budgeted income statement for entire quarter (not monthly) ended March 31. 8. Budgeted balance sheet as of March 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget for merchandisers. DIMSDALE SPORTS March Total $ $ 39,000 General and Administrative Expense Budget January February General and administrative salaries $ 13,000 $ 13,000 Maintenance 1,800 1,800 Depreciation 6,750 6,750 Total gen. and admin. expenses $ 21,550 $ 21,550 13,000 1,800 5,400 6,750 21,550 20,250 64,650 $ $ Required: Prepare a master budget for the months of January, February, and March that has the following budgets: 1. Sales budgets. 2. Merchandise purchases budgets. 3. Selling expense budgets. 4. General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget for merchandisers. 5. Capital expenditures budgets. 6. Cash budgets. 7. Budgeted income statement for entire quarter (not monthly) ended March 31. 8. Budgeted balance sheet as of March 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Capital expenditures budgets. ... DIMSDALE SPORTS Capital Expenditures Budget January February $ 38,400 $ 96,000 March Total $ 26,400 $ 160,800 Equipment purchases Land purchase Total capital expenditures 150,000 150,000 $ 38,400 $ 96,000 $ 176,400 $ 310,800 DIMSDALE SPORTS CO. Cash Budget January February March Beginning cash balance Total cash available Less: Cash payments for: Total cash payments 0 0 0 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 DIMSDALE SPORTS CO. Budgeted Income Statement For Three Months Ended March 31 Selling, general and administrative expenses Total operating expenses 0 0 $ 0 DIMSDALE SPORTS CO. Budgeted Balance Sheet March 31 Assets Total current assets Equipment, Net 0 Total assets Liabilities and Equity Liabilities Total liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and EquityStep by Step Solution
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