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. DIMSDALE SPORTS COMPANY Balance Sheet Cash Assets Accounts receivable Inventory December 31 Equipment Less: Accumulated depreciation Total assets $ 21,500 520,000 $ 540,000 67,500 95,000 472,500 $ 1,109,000 Loan payable Liabilities and Equity Liabilities Accounts payable $ 370,000 12,000 92,000 474,000 Equity $ 471,000 164,000 635,000 Taxes payable (due March 15) Common stock Retained earnings Total liabilities and equity $ 1,109,000 To prepare a master budget for January, February, and March, use the following information.