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mework Saved Help Save & Exit Sub 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 37,000 520,000 90,000 Accounts receivable Inventory Total current assets Equipment Less: accumulated depreciation $ 647,000 576,000 72,000 Equipment, net Total asset 504,000 $1,151,000 Liabilities and Equity Accounts payable Bank loan payable Taxes payable (due 3/15/2018) Total 1iabilities Conmon stock $375,000 12,000 88,000 475,000 73,500 202,500 Total stockholders' equity Total liabilities and equity $1,151,000 To prepare a master budget for January, February, and March of 2018, management gathers the following information. a. The company's single product is purchased for $20 per unit and resold for $57 per unit. The expected inventory level of 4,500 units on December 31, 2017, is more than management's desired level, which is 20% of the next month's expected sales in units). Expected sales are: January, 7,000 units; February, 9,500 units; March, 11.250 units; and April, 10,500 units b. Cash sales and credit sales represent 20% and 80%, respectively, of total sales. Of the credit sales, 61% is collected in the first month after the month of sale and 39% in the second month after the month of sale. For the December 3, 201, accounts Prev 1 of 1Next

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