Problem 20-8AA (Algo) Merchandising: Preparation of a complete master budget LO P4 Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31. DIMSDALE SPORTS COMPANY Balance Sheet December 31 Assets Cash Accounts receivable Inventory Equipment Total assets Less: Accumulated depreciation Liabilities and Equity Liabilities Accounts payable Loan payable $ 20,000 520,000 100,000 $ 576,000 72,000 504,000 $ 1,144,000 Taxes payable (due March 15) Equity Common stock Retained earnings Total liabilities and equity $ 380,000 12,000 89,000 481,000 $ 471,500 191,500 663,000 $ 1,144,000 To prepare a master budget for January, February, and March, use the following information.