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Required a. October sales are estimated to be $300,000, of which 40 percent will be cash and 60 percent will be credit. 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 $13,800. 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) $19,800 Sales comissions 41 of Sale Supplies expense 21 of Sales Utilities (fixed) $ 1,200 Depreciation on store fixtures (fixed) $ 5,800 Rent (fixed) $6,600 Miscellaneous (fixed) $ 3.000 The capital expenditures budget indicates that Zachary wil spend $246,800 on October 1 for store fixtures, which are expected to have a $38.000 salvage value and a three-year (36-month) useful tifo. Use this information to prepare a seling 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. Zachary 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 $30.000 cash cushion Prepare a cash budget Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Required G October sales are estimated to be $300,000, of which 40 percent will be cash and 60 percent will be credit. expects sales to increase at the rate of 20 percent per month. Prepare a sales budget. October November December Sales Budget Cash sales Sales on account Total budgeted sales Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Required G The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month sale. Prepare a schedule of cash receipts. October November December Schedule of Cash Receipts Current cash sales Plus collections from A/R Total collections prepare a sening and administrative expenses Duaget. f. Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in th are incurred. Prepare a cash payments budget for selling and administrative expenses. g. Zachary borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayment amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 pero the last day of the month. To be prudent, the company desires to maintain a $30,000 cash cushion. Prepare Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Required G The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $13,800. that all purchases are made on account. Prepare an inventory purchases budget. October November December Inventory Purchases Budget + Inventory needed Required purchases (on account) Complete this question by entering your answers in the tabs below. Required A Required B Required C Fequired D Required E Required F Required G The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 perce month. Prepare a cash payments budget for inventory purchases. (Round your final answers to the neare 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 payment for inventory Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Required 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 Required A Required B Required C Required D Required E Required F Requir Utilities and sales commissions are paid the month after they are incurred; all other expenses 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 Required A Required B Required Required D Required E Required F Required G Zachary borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments any amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 pe month in cash on the last day of the month. To be prudent, the company desires to maintain a $30,000 cash a cash budget. (Any repayments/shortage which should be indicated with a minus sign.) Cash Budget October November December Section 1: Cash Receipts Total Cash available Section 2: Cash Payments Total budgeted disbursements Section 3: Financing Activities