Cash Accounts receivable Inventory Equipment Assets DIMSDALE SPORTS COMPANY Balance Sheet December 31 Less: Accumulated depreciation Equipment, net Total assets Liabilities. Liabilities and Equity Accounts payable Loan payable Taxes payable (due March 15) Equity Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 636,000 79,500 $ 350,000 12,000 91,000 $ 471,000 331,000 $ 21,000 520,000 157,500 556,500 $ 1,255,000 $ 453,000 802,000 $ 1,255,000 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 $56 per unit. The inventory level of 5,250 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, 7,500 units; February, 9,250 units; March, 11,500 units; and April, 10,500 units. All sales are on credit. b. Cash receipts from sales are budgeted as follows: January, $246,000; February, $728,860; March, $527,674. c. Cash payments for merchandise purchases are budgeted as follows: January, $65,000; February, $309,600; March, $156,600. d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $4,000 per month. e. General and administrative salaries are $12,000 per month. Maintenance expense equals $1,800 per month and is paid in cash. f. New equipment purchases are budgeted as follows: January, $33,600; February, $100,800; and March, $21,600. Budgeted depreciation expense is January, $ 6,975; February, $8,025; and March, $8,250. 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 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 $21,000 at the end of each month. i. The income tax rate for the company is 41%. Income taxes on the first quarter's income will not be paid until April 15. Strategic Tools Assignment i Assets Total current assets Equipment, Net Total assets Liabilities and Equity Liabilities Total liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Equity DIMSDALE SPORTS CO. Budgeted Balance Sheet March 31 < Required 7 Save 0 Requi