11 Required information P=n1f3 ATC 1-2 (Static) Group Assignment Master budget and pro forma statements [The following information applies to the questions displayed below] :33: The following trial balance was drawn from the records of Havel Company as of October 1, year 2. Cash $ 16,000 "i Accounts receivable 60,000 References Inventory 40,000 Store equipment 200,000 Accumulated depreciation $ 76, 800 Accounts payable 72, 000 Line of credit loan 100,000 Common stock 50, 000 Retained earnings 17,200 Totals $316,000 $316, 000 ATC 7-2 (Static) Part a Required a-1. 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 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. Seventyve 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) 2); 7,200 Supplies expense (1096 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 enterlng your answers In the tabs below. 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. _ Total budgeted sales _ _ Teeueeeeeeueeeeee Req AZ > Req A1 Req A2 Req A3 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 less A Payment of current months' accounts payable _ _ _ Payment for prior month's accounts payable _ __ Req A1 Req A2 Req A3 Based on the following selling and administrative expenses budgeted for October, prepare a selling and administrative expenses budget for October, November, and December. October November December Sales commissions $ 7,200 Supplies expense 1,800 Utilities 2,200 Depreciation on store equipment 1,600 Salary expense 34,000 Rent 6,000 Miscellaneous 1,000 Total S&A expenses $ 53,800