Near the end of 2015, the management of Dimsdale Sports Co., a following estimat

Question

Near the end of 2015, the management of Dimsdale Sports Co., a following estimated balance sheet for December 31, 2015. compa DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2015 Assets Cash Accounts receivable Inventory $ 36,000 525,000 150,000 Total current assets 711,000 $540,000 67,500 Equipment, net 472,500 Total assets $1,183,500 Liabilities and Equity Accounts payable Bank loan payable Taxes payable (due 3/15/2016) $360,000 15,000 90,000 $ 465,000 Total liabilities Common stock Retained earnings 472,500 246,000 Total stockholders' equity 718,500 Total liabilities and equity $1,183,500

Explanation / Answer

Cash receipts from customers:

Cash buget:

Particulars Calculation January February March Sales in units (A) 7000 9000 11000 Selling price per unit (B) $55.00 $55.00 $55.00 Total budgeted sales (C )=(A) *(B) $385,000.00 $495,000.00 $605,000.00 Cash sales (D) =25%*(C ) 25% $96,250.00 $123,750.00 $151,250.00 Sales on credit (E ) =75%*(C ) 75% $288,750.00 $371,250.00 $453,750.00 Particulars Total January February March March 31 receivable Accounts receivable-January Opening balance $525,000.00 $125,000.00 $400,000.00 Credit sales from: January $173,250.00 $115,500.00 February $222,750.00 $148,500.00 March $453,750.00 Total $125,000.00 $573,250.00 $338,250.00 $602,250.00 Total cash receipts from customers Particulars January February March Collections of receivables $125,000.00 $573,250.00 $338,250.00

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