Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019 DIRI DE SPORTS COMPANY Intimated Balance Sheet December 21, 2019 Assets Canh 36,000 Accounts receivable 520,000 Inventory 100,000 Total current anset $ 656,000 pant 552,000 LBST Accumulated depreciation 69.000 liquipment, net 483,000 Total anset $1,139,000 Liabilities and Equity Nocounts payable 340,000 Bank loan payable 13.000 Taxes payable (due 3/15/2020) 09,000 Total liabilities 442.000 Connon stock 472.000 Retained earnings 225.000 Total stockholders' equity 697.000 Total liabilities and equity 31,139,000 To prepare a master budget for January, February, and March of 2020, management gathers the following information. 1 a. The company's single product is purchased for $20 per unit and resold for $59 per unit. The expected Inventory level of 5,000 units on December 31, 2019, is more than management's desired level, which is 20% of the next month's expected sales (in units). Expected sales are January 7,500 units; February 8,750 units, March 10,500 units, and April, 9,500 units. b. Cash sales and credit sales represent 20% and 80%, respectively, of total sales of the credit sales, 63% is collected in the first month after the month of sale and 37% in the second month after the month of sale. For the December 31, 2019, accounts recelvable balance $130,000 is collected in January 2020 and the remaining $390,000 is collected in February 2020 c. Merchandise purchases are paid for as follows: 20% In the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2019, accounts payable balance, $65,000 is paid in January 2020 and the remaining $275,000 is paid in February 2020. d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $90,000 per year. e. General and administrative salaries are $144,000 per year. Maintenance expense equals $1,900 per month and is paid in cash. f. Equipment reported in the December 31, 2019, balance sheet was purchased in January 2019. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January $33,600, February, 596,000, and March, $24,000. This equipment will be depreciated under the straight- line method over eight years with no salvage volue. A full month's depreciation is taken for the month in which equipment is purchased The company plans to buy land at the end of March at a cost of $170,000, which will be pold with cash on the last day of the month h. The company has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year and Interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $28.000 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. Print Required: Prepare a master budget for each of the first three months of 2020; include the following component budgets. 1. Monthly sales budgets. 2. Monthly merchandise purchases budgets, 3. Monthly selling expense budgets. 4. Monthly general and administrative expense budgets, 5. Monthly capital expenditures budgets 6. Monthly cash budgets. 7. Budgeted income statement for the entire first quarter (not for each month) 8. Budgeted balance sheet as of March 31, 2020 1 March nts Cash Budget January, February, and March 2020 January February Beginning cash balance 36,000 Cash receipts from customers Total cash available Cash payments for: Merchandise Sales commissions Sales salaries General & administrative salaries 12,000 12,000 Maintenance expense Interest on bank loan eBook Print 12,000 References Purchases of equipment Purchase of land Taxes payable Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 12,000 12,000 12,000 Loan balance January February March Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 6 Calc Cash Bud Required 7 Required B Budgeted Income statement for the entire first quarter (not for each month). (Round your final answers to the nearest whole dollar) DIMSDALE SPORTS CO. Budgeted Income Statement For Three Months Ended March 31, 2020 Operating expenses es Total operating expenses 0 0 $ 0 Required 1 Required 2 Required 3. Required 4 Required 5 QUOD Calc required Cash Bud Required 7 Required 8 Budgeted balance sheet as of March 31, 2020. (Round your final answers to the nearest whole dollar) DIMSDALE SPORTS CO. Budgeted Balance Sheet March 31, 2020 Assets int Total current assets encos 0 Equipment net Total assets Liabilities and Equity Liabilities Bank loan payable Total liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity (Required