Problem 7-8AA (Algo) Merchandising: Preparation of a complete master budget LO P4 Dimsdale Sports, a merchandising company, 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 $60 per unit. The inventory level of 4,500 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, 7,250 units; February, 8,500 units; March, 11,250 units; and April, 9,500 units. All sales are on credit. b. Cash receipts from sales are budgeted as follows: January, $272,250; February, $756,633; March, $549,713. c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000 : February, $301,700: March, $161,100. d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $7,500 per month. e. General and administrative salaries are $12,000 per month. Maintenance expense equals $2,200 per month and is paid in cash. f. New equipment purchases are budgeted as follows: January, $36,000; February, $96,000; and March, $26,400. Budgeted depreciation expense is January, $6,750; February, $7,750; and March, $8,025. 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 $20,000 at the end of each month. i. The income tax rate for the company is 37\%. Income taxes on the first quarter's income will not be paid until April 15. \begin{tabular}{|l|r|r|r|} \hline \multicolumn{2}{|c|}{ DIMSDALE SPORTS COMPANY } & \multicolumn{1}{c|}{ Cadget } & \multicolumn{1}{c|}{ March } \\ \hline Beginning cash balance & & & \\ \hline Add: Cash receipts from sales & 272,250 & 756,633 & \\ \hline Total cash available & & & \\ \hline Less: Cash payments for: & & & \\ \hline Merchandise purchases & & & \\ \hline Sales commissions & & & \\ \hline Sales salaries & & & \\ \hline General and administrative salaries & & & \\ \hline Maintenance & & & \\ \hline Loan interest & & & \\ \hline Taxes & & & \\ \hline Purchases of equipment & & & \\ \hline Purchase of land & & & \\ \hline & & & \\ \hline Total cash payments & & & \\ \hline Preliminary cash balance & & & \\ \hline Additional loan (loan repayment) & & & \\ \hline Ending cash balance & & & \\ \hline \end{tabular} DIMSDALE SPORTS COMPANY Budgeted Income Statement For Three Months Ended March 31 Budgeted balance sheet as of March 31. (Round your final answers to the nearest whole dollar