Please use the graphs provided to fill in empty boxes for the budget questions . Thank You
Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company. prepared the following estimated balance sheet for December 31, 2019. DIHBDBLE SPORTS COMPIHT Estimated Balance Sheet December 31, 2019 Assets Cash 5 37,000 Accounts receivable 520,000 Inventory 90,000 Total current assets $ 647,000 Equipment 576,000 Less: Accumulated depreciation 12,000 Equipment, net 504,000 Total assets $1,151,000 Liabilities and Equity Accounts payable $360,000 Bank loan payable 12,000 Taxes payable {due 3f15f2020) 89,000 Total liabilities $ 461,000 Common stock 414,500 Retained earnings 215,500 Total stockholders' equity 690,000 Total liabilities and equity $1,151,000 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 $20 per unit and resold for $57 per unit. The expected inventory level of 4,500 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. 5,750 units; February, 8,750 units: March, 11.250 units: and April, 10.000 units. b. Cash sales and credit sales represent 25% and 75%, 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 alter the month of sale. For the December 31, 2019. accounts receivable balance, $130,000 is collected in January 2020 and the remaining $390,000 is collected in February 2020. c. Merchandise purchases are paid for as follows: 20% in the rst month after the month of purchase and 80% in the second month alter 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 $50,000 per year. e. General and administrative salaries are $132,000 per year. Maintenance expense equals $2.100 per month and is paid in cash. f. 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, $36.000; February. $103,200: and March. 2626.400. 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 $165,000, 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 $50,000 at the end of each month. i. The income tax rate for the company is 39%. Income taxes on the rst quarter's income will not be paid until April 15. Cemplete this question by enterlng your answers In the halls below. Required 1 Required 2 Required 3 ' Required 4 Required 5 Required 6 Cal: Required 6 Cash Bud ' Required Ir' Required 8 Monthly sales budgets. Totals for the quarter 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 merchandise purchases budgets. DIMSDALE SPORTS CO. Merchandise Purchases Budget January, February, and March 2020 January February March Next month's budgeted sales (units) 8,750 11,250 10,000 Ratio of inventory to future sales 20% 20% 20% Required units of available merchandise Units to be purchasedComplete this question by entering your owners In the labs below. Requlred 3 Required 4 Required 5 Mqad 6 gigs: Required 7 Required 3 Monthly selling expense budgets. Endgame ___ _= _ 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 general and administrative expense budgets. January February March Equipment - beginning of month $ 576,000 Equipment purchases Equipment - end of month DIMSDALE SPORTS CO. General and Administrative Expense Budget January, February, and March 2020 January February March
