11 n. w .1 Wm"... an\"... "saw-um... Ivlua'cl wuugc| ulna plv nun-u amen-em; [The following information applies to the questions displayed below.] The following trial balance was drawn from the records of Havel Company as of October 1, year 2. Part1of 3 - Cash $ 16,000 Accounts receivable 60,000 769 Inventory 40,000 ' . Store equipment 200,000 (\""1\" Accumulated depreciation $ 76,800 Accounts payable 72,000 Line of credit loan 100,000 Common stock 50,000 Retained earnings 17.200 \"WW\" Totals $316,000 $316,000 ATC 7-2 (Static) Part 3 Required 34. Based on the following information, prepare a sales budget and a schedule of cash receipts for October, November, and December. Sales for October are expected to be $180,000. consisting of $40,000 in cash and $140,000 on credit. The company expects sales to increase at the rate of 10 percent per month. All accounts receivable are collected in the month following the sale. a-2. Based on the following information, prepare a purchases budget and a schedule of cash payments for inventory purchases for October, November, and December, The inventory balance as of October1 was $40,000. Cost of goods sold for October is expected to be $72,000. Cost of goods sold is expected to increase by 10 percent per month. The company expects to maintain a minimum ending inventory equal to 20 percent of the current month cost of goods sold. Seventy-ve percent of accounts payable is paid in the month that the purchase occurs; the remaining 25 percent is paid in the following month. a-3. Based on the following selling and administrative expenses budgeted for October, prepare a selling and administrative expenses budget for October, November: and December. Sales commissions (10% increase per month) $ 7,200 Supplies expense (1095 increase per month) 1,800 Utilities (fixed) 2,200 Depreciation on store equipment (fixed) 1,600 Salary expense (fixed) 34,000 Rent (fixed) 6,000 Miscellaneous (fixed) 1,000 Cash payments for sales commissions and utilities are made in the month following the one in which the expense is incurred. Supplies and other operating expenses are paid in cash in the month in which they are incurred. Complete this question by entering your answers In the tabs below. Req A1 Req A2 Req A3 Based on the following information, prepare a sales budget and a schedule of cash receipts for October, November, and December. Sales for October are expected to be $180,000, consisting of $40,000 in cash and $140,000 on credit. The company expects sales to increase at the rate of 10 percent per month. All accounts receivable are collected in the month following the sale. Show lessA s oooos 44.000. Total budgeted sales $ 180,000 $ 198,000 $ 217,800 Reg AZ > Based on the following information, prepare a purchases budget and a schedule of cash payments for inventory purchases for October, November, and December. The inventory balance as of October 1 was $40,000. Cost of goods sold for October is expected to be $72,000. Cost of goods sold is expected to increase by 10 percent per month. The company expects to maintain a minimum ending inventory equal to 20 percent of the current month cost of goods sold. Seventy-ve percent of accounts payable is paid in the month that the purchase occurs; the remaining 25 percent is paid in the following month. Show IessA : udgeted cost of goods sold $ 72,000 $ 79,200 $ 87,120 ' lus: Desired ending inventory 14,400 15,840 17,424 Inventory needed 86,400 95,040 104,544 L ATC 7-2 (Static) Part b b. Supply the missing information in the following pro forma income statement and balance sheet for the fourth quarter of year 2. The statements are prepared as of December 31. year 2. Complete this question by enterlng your answers In the tabs below. Income Statement Balance Sheet Supply the missing information in the following pro forma balance sheet for the fourth quarter of year 2. The statement is prepared as of December 31, year 2. (Amounts to be deducted should be indicated by a minus sign.) Assets _ Cash $ 9 760 Accounts receivable Inventory Store equipment $ 200,000 Accumulated depreciation store equipment _ Book value of equipment 118,400 Total assets Liabilities Accounts payable Utilities payable Sales commissions payable Line of credit 23 936 Equity Common stock 50 000 Retained earnings Total liabilities and equity $ 314.984 ( Income Statement ATC 7-2 (Static) Part b b. Supply the missing information in the following pro forma income statement and balance sheet for the fourth quarter of year 2. The statements are prepared as of December 31, year 2. Complete thls questlon by entering your answers In the tabs below. Income Statement Balance Sheet Supply the missing information in the following pro forma income statement for the fourth quarter of year 2. The statement is prepared as of December 31, year 2. Sales revenue Cost of goods sold 357,480 Operating expenses Operating income 193,290 Interest expense (2,530) Net income 190,760 Balance Sheet > ATC 7-2 (Static) Part c c. Indicate whether Havel will need to borrow money during October by preparing October's Cash Budget. (Negative amounts should be indicated by a minus sign.) Cash Budget for October Cash available 0 Less: Payments Total budgeted payments 0 Cash surplus (shortage) Will Havel need to borrow money during October