Problem 7-8AA (Algo) Merchandising: Preparation of a complete master budget LO P4 Dimsdale Sports, a merchandising compary, reports the following balance sheet at December 31. 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 $57 per unit. The inventory level of 5,000 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, 7,000 units; February, 8,750 units; March, 11,250 units, and April, 10,000 units. All sales are on credit. b. Cash recelpts from sales are buogeted as follows: January, $239,700; February, $714,412; March, $512,872. c. Cash payments for merchandise purchases are budgeted as follows: January, $55,000, February, $322,500, March, $145,500 d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $7,000 per month. e. General and administrative salaries are $13,000 per month. Maintenance expense equals $2,100 per month and is paid in cash. 1. New equipment purchases are budgeted as foliows: January, $38,400; February, $93,600; and March, $24,000. Budgeted depreciation expense is January, $6,525. February, $7,500, and March, $7750 g. The company budgets a land purchase at the end of March at a cost of $160,000, which will be paid with cash on the last day of the month. h. The compony has an agreement with its bank to obtain additional loons 05 needed. The interest rate is 1% per month and interest is pald at each month-end based on the beginning-month balance. Partial or full payments on these loans are made on the last clay of the month. The comparty maintains a minimum encing cash balence of $22,000 at the end of each month i. The income tax rate for the company 1541%. 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. Sales budgets. Merchandise purchases budgets. Complete this question by entering your answers in the tabs below. Selling expense budgets. Complete this question by entering your answers in the tabs below. General and administrative expense budgets. Hint: Depreciation is included in the general and administrative budget for merchandisers. Complete this question by entering your answers in the tabs below. Capital expenditures budgets. 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.) Budgeted income statement for the entire first quarter (not for each month). (Round your final answers to the nearest whole dollar.) Complete this question by entering your answers in the tabs below. Budgeted balance sheet as of March 31 . (Round your final answers to the nearest whole dollar.)