ABC Inc. sales in December were $$220,000,$ the company budgeted sales revenues to increase by $15\%$ every month.

Cash sales are $30\%$& Credit sales are $70\%.$ Past experience indicates that $60\%$ of the credit sales will be collected in the month of sale and the remaining $39\%$ will be collected in the following month, and $1\%$ is uncollectible.

ABC maintains inventory of $20\%$ of the CGS for the following month. CGS equal $50\%$ of sales Revenue. Purchases of inventory are all on credit and $60\%$ is paid in the month of purchase and $20\%$ in the month following purchase, and $20\%2$ months after the purchase.

Expenses of the company:

Rent expense is $$5,500$ a month paid as incurred.

Salaries expense $$12,000$ a month paid $50\%$ same month and $50\%$ following month.

Utility expense $$700$ a month paid following month.

Sales commission expense is $10\%$ of sales paid same month.

Insurance expense $$600$ a month paid at the beginning of the quarter.

Depreciation expenses is $$24,000$ for the year.

Maintenance expense is $5\%$ of sales.

Sales Budget

$\backslash$table$[[,$Jan,Feb,March,Total$],[$Sales Revenue,$253,000,290,950,334,592\mathrm{.}5,878,542\mathrm{.}5$

Operating expenses budget.

$\backslash$table$[[$V expenses,Jan,Feb,March,Total$],[$Sales commission $10\%,25,300,29,095,33,459\mathrm{.}5,56,577],[$Maintenance expense $5\%,12,650,14,547\mathrm{.}5,16,729\mathrm{.}5,28,288\mathrm{.}5$