ABCD Corp prepares its master budget on a quarterly basis and has a September 30 year end The following data and information has been prepared to help you prepare the master budget for the first quarter of the fiscal year (October thru December) Info provided as follows Actual Sales for September, 2017 and projected sales for October, November and December, 2017 and January 2018 are as follows September $280,000 October $400,000 November $600,000 December $300,000 January $500,000 Monthly sales are 25 on cash and 75 on credit All customer payments on credit sales are collected in the month following the sale At September 30 ABCD Corp had outstanding accounts receivable of $100,000 and are a result of September credit sales This amount will be collected as follows 75 in October and 25 in November ABCD Corps Gross Profit Percentage is 65 Therefore Cost of Goods Sold comprise 35 of sales Monthly Expenses are budgeted as follows All expense amounts are paid in the month they are incurred Sales and Wages $27,000 per month Advertising $70,000 per month Shipping 5 of gross sales Miscellaneous Expenses $10,000 3 of sales Depreciation Expense is expected to be $42,000 each quarter ABCDs Ending Inventory at September 30 is $80,000 Ending Inventory for October, November and December should equal 25 of the following months Cost of Goods Sold One half of inventory purchases are paid for in the month of purchase the other half is paid for in the following month At September 30 the Company still owed $70,000 to vendors for their September inventory purchases this amount will be paid in October During November, the company plans to purchase a new copy machine for $20,000 cash During December, other equipment will be purchased for cash at a cost of $200,000 During October, the company will declare and pay $149,000 in dividends ABCDs Cash balance at September 30 is $40,000 Has an agreement with a local bank that allows them to borrow in increments of $1,000 at the beginning of each month The interest rate on the on loans is 1 per month and for simplicity well assume the loan is not compounded The company would, as far as it is able, repay the loan plus accumulated interest at the end of each quarter to the extent it has available funds exceeded the $40,000 minimum balance amount Required Prepare the following Schedules for October, November and December Properly label all items 1 EXPENSE CASH DISBURSEMENT BUDGET (NOTE THIS BUDGET SHOULD INCLUDE TOTAL CASH DISBURSEMENTS FOR INVENTORY (AMOUNTS FROM INVENTORY CASH DISBURSEMENT BUDGET ABOVE), SALARIES, ADVERTISING, SHIPPING AND MISCELLANEOUS EXPENSES), CASH (RECEIPTS AND DISBURSEMENTS) BUDGET

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ABCD Corp prepares its master budget on a quarterly basis and has a September 30 year end. The following data and information has been prepared

ABCD Corp prepares its master budget on a quarterly basis and has a September 30 year end. The following data and information has been prepared to help you prepare the master budget for the first quarter of the fiscal year (October thru December). Info provided as follows:

Actual Sales for September, 2017 and projected sales for October, November and December, 2017 and January 2018 are as follows

September $280,000

October $400,000

November $600,000

December $300,000

January $500,000

Monthly sales are 25% on cash and 75% on credit. All customer payments on credit sales are collected in the month following the sale.
At September 30 ABCD Corp had outstanding accounts receivable of $100,000 and are a result of September credit sales. This amount will be collected as follows: 75% in October and 25% in November.
ABCD Corps Gross Profit Percentage is 65%. Therefore Cost of Goods Sold comprise 35% of sales.
Monthly Expenses are budgeted as follows. All expense amounts are paid in the month they are incurred.
Sales and Wages: $27,000 per month
Advertising: $70,000 per month
Shipping: 5% of gross sales
Miscellaneous Expenses: $10,000 + 3% of sales
Depreciation Expense is expected to be $42,000 each quarter.
ABCDs Ending Inventory at September 30 is $80,000. Ending Inventory for October, November and December should equal 25% of the following months Cost of Goods Sold.
One half of inventory purchases are paid for in the month of purchase; the other half is paid for in the following month. At September 30 the Company still owed $70,000 to vendors for their September inventory purchases---this amount will be paid in October.
During November, the company plans to purchase a new copy machine for $20,000 cash. During December, other equipment will be purchased for cash at a cost of $200,000.
During October, the company will declare and pay $149,000 in dividends.
ABCDs Cash balance at September 30 is $40,000.
Has an agreement with a local bank that allows them to borrow in increments of $1,000 at the beginning of each month. The interest rate on the on loans is 1% per month and for simplicity well assume the loan is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of each quarter to the extent it has available funds exceeded the $40,000 minimum balance amount.

Required: Prepare the following Schedules for October, November and December. Properly label all items.

1. EXPENSE CASH DISBURSEMENT BUDGET (NOTE: THIS BUDGET SHOULD INCLUDE TOTAL CASH DISBURSEMENTS FOR INVENTORY (AMOUNTS FROM INVENTORY CASH DISBURSEMENT BUDGET ABOVE), SALARIES, ADVERTISING, SHIPPING AND MISCELLANEOUS EXPENSES), CASH (RECEIPTS AND DISBURSEMENTS) BUDGET