1 Required information [The following information applies to the questions displayed below) Franklin 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: 75 Doints Required .. October sales are estimated to be $180,000, of which 40 percent will be cash and 60 percent will be credil. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget b. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts. c. The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending Inventory equal to 10 percent of the next month's cost of goods sold. However ending inventory of December is expected to be $12,600. Assume that all purchases are made on account. Prepare an inventory purchases budget d. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month Prepare a cash payments budget for inventory purchases. e. Budgeted selling and administrative expenses per month follow: $11,600 4% of Sales 2% of Sales Salary expense (fixed) Sales comissions Supplies expense Utilities (fixed) Depreciation on store fixtures (fixed) Rent (fixed) Miscellaneous (fixed) $4,600 $1. *The capital expenditures budget indicates that Franklin will spend $191600 on October for store fixtures, which are expected to have a $26.000 salvage value and a three-year (36-month) useful life. Use this information to prepare a selling and administrative expenses budget. f. Utilities and sales commissions are paid the month after they are incurred all other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses. g. Franklin borrows funds, in increments of $1000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays Ils vendors on the last day of the month. It pays interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $18.000 cash cushion. Prepare a cash budget Complete this question by entering your answers in the tabs below. Required A Required B Required Required Required Required F Required October sales are estimated to be $180,000, of which 40 percent will be cash and 60 per expects sales to increase at the rate of 20 percent per month. Prepare a sales budget will be credit. The company October November December Sales Budget Cash sales salos on account Total budgeted sales *The capital expenditures budget indicates that Franklin will spend $191,600 on October 1 for store fixtures, which are expected to have a $26.000 salvage value and a three-year (36-month) useful life Use this information to prepare a selling and administrative expenses budget t. Uulities and sales commissions are paid the month after they are incurred all other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses. g. Franklin borrows funds, in increments of $1000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays Its vendors on the last day of the month. It pays Interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $18,000 cash cushion. Prepare a cash budget Complete this question by entering your answers in the tabs below. Required A Required Required Requred D Required E Required Requred G The company expects to collect 100 percent of the accounts receivable generated by cred sale. Prepare a schedule of cash receipts. the month following the October November December Schedule of Cash Receipts Curent cash sales Plus cochons roen AR Total collections ROLA Mac 1 75 points Required information tunities and sales commissions are paid the month atter they are incurred all other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses. g. Franklin borrows funds, in increments of $1000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $18,000 cash cushion. Prepare a cash budget. Print Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required Required Required The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $12,600. Resume that all purchases are made on account. Prepare an inventory purchases budget October November December Inventory Purchases Budget Inventory needed Requrto purchases on account) Required information Complete this question by entering your answers in the tabs below. Print Required Required B Required Required Required e Required Required Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses November December October Schedule of Cash Payments for $8A Expenses Salary Saecommons Supples esport Depreciation on store fors Macs Total payments for expenses (Required E Required> Required information w PSA 75 points Cash Budget October November December Section 1 Cash Recepts Total cash available Section 2 Cash Payments Total Budgeted disbursements Section 3 Financing Activities