30 points Camden Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1 year 1. 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. Required a. October soles are estimated to be $125,000, of which 40 percent will be cash and 60 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 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 $6,000 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 Salary expense (fixed) Sales comissions Supplies expense Utilities (fixed) Depreciation on store fixtures (fixed) Rent (fixed) Miscellaneous (fixed) 54 of Sales 2 of soles $700 $2.000 $2,400 $ 600 30 Salary expense (red) 59,000 Sales como 5 of Sales Supplies expense 20 of Sales Dities te 1700 Depreciation on store fixtures Fixed 12.000 Rent (fixed $2,400 Miscellaneous (fixed "The cortexpenditures budget indicates that Camden will spend $82,000 on October for store focures which are expected to have a $10,000 salvagevolve and a three year (M-month useful Use this information to prepare a setting and administrative expenses budget totes and sales commissions are paid the month after they are incurred the expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and ministrative expenses 9. Camden borrows.funds, in increments of 1000, and pay them on the last day of the month Roome may be made any amount oble. The company also pays endors on the last day of the month it pays interest of percent per month in cahon the last day of the month To be prudent, the company desires to maintain a $6.000 cash cushion, Prepare a cash budget Prepare a proforma income statement for the quarter Prepare a proforma balance sheet at the end of the quarter - Prepare a proforma statement of cash flows for the quarter Required A Required B Required C Required D Required E Required F Required G Required H Required I October sales are estimated to be $125,000, of which 40 percent will be cash and 60 percent will be credit. The expects sales to increase at the rate of 8 percent per month. Prepare a sales budget. October November December Sales Budget Cash sales 50,000 $ 90,000 62,000 Sales on account 75,000 135,000 243,000 Total budgeted sales 125,000 $ 225,000 $ 405,000 $ 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. October November December Schedule of Cash Receipts Current cash sales Plus collections from AIR Total collections 0 0 $ 0 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 $6,000. Assume that all purchases are made on account. Prepare an inventory purchases budget. October November December Inventory Purchases Budget Inventory needed 0 0 0 Required purchases (on account) $ 0 s 0 $ 0 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, (Round your final answers to the nearest whole dollar amounts.) November December October Schedule of Cash Payments Budget for Inventory Purchases Payment of current month's accounts payable Payment for prior month's accounts payable Total budgeted payments for inventory 0 0 GA 0 Prepare a selling and administrative expenses budget. November December October Selling and Administrative Expense Budget Salary expense Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total S&A expenses $ 0 $ 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 S&A Expenses Salary expense Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total payments for S&A expenses 0 $ $ 0 Camden borrows funds, in increments of $1,000, 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 $6,000 cash cushion. Prepare a cash budget. (Any repayments should be indicated with a minus sign.) Show less Cash Budget October November December Section 1: Cash Receipts 0 0 0 Total cash available Section 2: Cash Payments 0 0 Total budgeted disbursements Section 3: Financing Activities Cash Budget October November December Section 1: Cash Receipts 0 Total cash available Section 2: Cash Payments 0 0 Total budgeted disbursements Section 3: Financing Activities 0 0 O $ 0 $ 0 $ 0 Prepare a pro forma income statement for the quarter. CAMDEN COMPANY Pro Forma Income Statement For the Quarter Ended December 31, Year 1 0 O $ o Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.) CAMDEN COMPANY Pro Forma Balance Sheet December 31, Year 1 Assets 0 $ 0 Total assets Liabilities December 31, Year 1 Assets 0 Total assets $ 0 Liabilities Equity Total liabilities and equity $ 0 Prepare a pro forma statement of cash flows for the quarter. (Cash outflows should be indicated with a minus sign CAMDEN COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31, Year 1 Cash flows from operating activities $ 0 Net cash flows from operating activities Cash flows from investing activities Cash flow from financing activities 0