Problem 7-8AA Merchandising: Preparation of a complete master budget LO P4 Near the end of 2017, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2017. DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2017 Assets Cash Accounts receivable Inventory Total current assets Equipment Less: accumulated depreciation $ 36,000 520,000 150,000 $ 706,000 588,000 73,500 Equipment, net Total assets 514,500 $1,220,500 Liabilities and Equity Accounts payable Bank loan payable Taxes payable(due 3/15/2018) Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity $345,000 15,000 90,000 $ 450,000 472,500 298,000 770,500 $1,220,500