0 Required information Problem 14-23 Preparing a master budget for retail company with no beginning account balances LO 14 2, 14-3,14-4,14-5,14-6 The following information applies to the questions displayed below) Munoz Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks Problem 14-23 Part1 Required a. October sales are estimated to be $400.000, of which 45 percent will be cash and 55 percent will be credit. The company expects b. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. c. The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of d. The company pays 80 percent of accounts payable in the month of purchase and the remaining 20 percent in the following month. e. Budgeted selling and administrative expenses per month follow. sales to increase at the rate of 20 percent per month. Prepare a sales budget Prepare a schedule of cash receipts the next month's cost of goods sold. However, ending inventory of December is expected to be $13,900. Assume that all purchases are made on account. Prepare an inventory purchases budget Prepare a cash payments budget for inventory purchases Salary expense (fixed) Sales commissions Supplies expense utilities (fixed) Depreclation on store fixtures (fixed)* Rent (fixed) Miscellaneous (fixed) 519,980 4% of Sales 2% of Sales 5 3,3ee 5,980 5 6,700 $ 3,100 Required information Complete this question by entering your answers in the tabs below. Required H Required I Required J Prepare a pro forma income statement for the quarter. MUNOZ COMPANY Pro Forma Income Statement For the Quarter Ended December 31, 2019 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Operating income Interest expense Net income Required information Assets Cash Accounts receivable Inventory Store fixtures Less: Accumulated depreciation Book value of fixtures Total assets Liabilities Accounts payable Uilities payable Sales commissions payable Line of credit liability Equity Retained earnings Total liabilities and equity