Problem 7-8AA (Aigo) Merchandising: Preparation of a complete master budget LO P4 Dinsdale Sports, a merchandising company imports the following balance sheet ut Decante BISERICESTO Accounts receivable Ivory fouineet Lected deprecat toilyaan | 105, 53.0 11. 00 3. . 1. LA ACCO pays Tents payile Here 15 Casa tened Total draw Total time 5471,00 CIT.000 To prepare a master budget for January February and Marche following information a. The company's ungle product is purchased for 520 perant and resold for $57 perunt. The inventory level of 5 250 ton December is more than management desired level wochis 20% of the next months budgeted sales units Dodgetedre January 6.500 units February, 250 units, March 10,500 units and Art. 9,500 units All sales are on creat b. Cash receipts for sales are budgeted as follows January $236150 February, 5716.566, March, SSO 027 c.Cash payments for merchandise purchase a budgeted as follows Janowy. 565.000 February 5207400. March 587600 d. Saies commissions equal to 20% of sales dolors are paid each month Sales salaries fexcluding Cond ore 57.500 DE month e. General and administrative Sales 50,000 per month Mastice pense qu$2,200 per month and is paid inch New equipment purchases are budgeted as follows January 28.600 February 596.000, and March 526 400 Buated depreciation expenses January, 56100, February, 5700 and March 2375 The company budgets and purchase at the end of March a cost of $60,000, which will be with cash on the last day of the month h. The company has an agreement w bank to toneeded. The state per month and interest h. The company has an agreement with its bank to obtain additional loans as needed. The interest rate is 1% per month and interestis 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 1. The income tax rate for the company is 37%. 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 ceneral 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 2 Required Sales budgets. DIMSDALE SPORTS Sales Budget January February March Totals Budgeted sales units Selling price per unit Total budgeted sales Required 2 > complete this question by entering your answers in the tabs below. Requin Required 2 Required Required Required Required Reede Merchandise purchases budgets DIMSDALE SPORTS Merchandise Pachases Budget Jomary Tebruary Mech Calculation of Desired ending inventory Next perlod budgeted sales units Ratio of inwentory to tures Total required units Units to be purchased Cost per un Cast of merchandise purchases 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 General and Administrative Expense Budget January February > A March Total Total general and administrative expenses 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 March Total capital expenditures 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 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 COMPANY Cash Budget January February March Beginning cash balance Total cash available Less Cash payments for Total cash payments Preliminary cash balance 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 COMPANY Cash Budget January February March Beginning cash balance Total cash available Less Cash payments for 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 Budgeted balance sheet as of March 31. (Round your final answers to the nearest whole dollar) DIMSDALE SPORTS COMPANY Budgeted Balance Sheet March 31 Assets Total current assets Equipment. Net Total assets Liabilities and Equity Liabilities Total liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Merchandise purchases budgets. DIMSDALE SPORTS Merchandine Purchases Budget January February March Calculation of Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Total required units Units to be purchased Cost per unit Cost of merchandise purchases 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 Selling expense budgets. DIMSDALE SPORTS Selling Expense Budget January February March Budgeted sales Sales commissions Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 8 Required 3 Required 4 Required 5 Required 6 Required 7 General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget fc merchandisers. DIMSDALE SPORTS ho General and Administrative Expense Budget January February March Total Total general and administrative expenses 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 March Total capital expenditures PROJECT - MASTER BUDGET Cash budgets. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round you final answers to the nearest whole dollar) DIMSDALE SPORTS COMPANY Cash Budget January February March Beginning cash balance Total cash available Less Cash payments for 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 Budgeted income statement for the entire first quarter (not for each month). (Round your dollar) DIMSDALE SPORTS COMPANY Budgeted Income Statement For Three Months Ended March 31 Selling, general and administrative expenses Total operating expenses Budgeted balance sheet as of March 31. (Round your final answers to the nearest whole dollar) DIMSDALE SPORTS COMPANY Budgeted Balance Sheet March 31 Assets Total current assets Equipment, Net Total assets Liabilities and Equity Liabilities Total liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity