I need Help with completing # 7 and 8

[The following information applies to the questions displayed below.]

Near the end of 2015, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2015.

DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2015
Assets
Cash	$	37,000
Accounts receivable		520,000
Inventory		110,000
Total current assets				$	667,000
Equipment	$	552,000
Less accumulated depreciation		69,000
Equipment, net					483,000
Total assets				$	1,150,000
Liabilities and Equity
Accounts payable	$	365,000
Bank loan payable		16,000
Taxes payable (due 3/15/2016)		91,000
Total liabilities				$	472,000
Common stock		472,500
Retained earnings		205,500
Total stockholders equity					678,000
Total liabilities and equity				$	1,150,000

To prepare a master budget for January, February, and March of 2016, management gathers the following information.

a.	Dimsdale Sports single product is purchased for $20 per unit and resold for $56 per unit. The expected inventory level of 5,500 units on December 31, 2015, is more than managements desired level for 2016, which is 20% of the next months expected sales (in units). Expected sales are: January, 7,250 units; February, 9,000 units; March, 10,750 units; and April, 10,500 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, 2015, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February.
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, 2015, accounts payable balance, $80,000 is paid in January and the remaining $285,000 is paid in February.
d.	Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $48,000 per year.
e.	General and administrative salaries are $132,000 per year. Maintenance expense equals $2,100 per month and is paid in cash.
f.	Equipment reported in the December 31, 2015, balance sheet was purchased in January 2015. 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, $98,400; and March, $19,200. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full months depreciation is taken for the month in which equipment is purchased.
g.	The company plans to acquire land at the end of March at a cost of $170,000, which will be paid with cash on the last day of the month.
h.	Dimsdale Sports 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 $15,140 in each month.
i.	The income tax rate for the company is 37%. Income taxes on the first quarters income will not be paid until April 15.

Required:

Prepare a master budget for each of the first three months of 2016; include the following component budgets:

6. Monthly cash budgets. DIMSDALE SPORTS CO Cash Budget January, February, and March 2016 March January February 15,140 200,064 37,000 Beginning cash balance Cash receipts from customers 494,592 700,424 206,200 Total cash available 715,564 694,656 243,200 Cash disbursements: 80,000 299,200 94,200 Payments for merchandise o o 91,000 Taxes payable o Purchase of land 170,000 98,400 Purchases of equipment 11,000 11,000 11,000 General & administrative salaries 81,200 100,800 120,400 Sales commissions 4,000 4,000 000 Sales salaries 160 0 0 Interest on bank loan 2.100 2.100 2.100 Maintenance expense Total cash disbursements 212,060 515,500 182,756 200,064 Preliminary cash balance 0 0 (16,000) Additional loan (loan repayment) 15,140 200,064 182,756 Ending cash balance