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, 2021 and projected sales for October, November and December, 2021 and January 2022 are as follows September $280,000 October $400,000 November $600,000 December $1,800,000 January $700,000 Monthly sales are 32 on cash and 68 on credit Customer payments on credit sales are collected as follows 27 in the month of sale and 73 in the month following the month of sale At September 30 ABCD Corp had outstanding accounts receivable of $190,400 and are a result of September credit sales This amount will be collected as follows 100 in October ABCD Corps Gross Profit Percentage is 63 Therefore Cost of Goods Sold comprise 37 of monthly sales Monthly Expenses are budgeted as follows All expense amounts are paid in the month they are incurred Sales and Wages $31,000 per month Advertising $74,000 per month Shipping 7 of Sales Miscellaneous Expenses $10,000 6 of sales Depreciation Expense is expected to be $42,000 each quarter ABCDs Ending Inventory at September 30 is $44,400 Ending Inventory for October, November and December should equal 30 of the following months Cost of Goods Sold 60 of inventory purchases are paid for in the month of purchase the remaining 40 paid for in the following month At September 30 the Company still owed $72,000 to vendors for their September inventory purchases this amount will be paid in October During October, the company plans to purchase a new copy machine for $200,000 cash During December, other equipment will be purchased for cash at a cost of $30,000 During November, the company will declare and pay $100,000 in cash 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 a b EXPENSE CASH DISBURSEMENT BUDGET (NOTE THIS BUDGET SHOULD INCLUDE TOTAL CASH DISBURSEMENTS FOR INVENTORY PURCHASES, SALARIES, ADVERTISING, SHIPPING AND MISCELLANEOUS EXPENSES (Use Suggested Format Below) OCTOBER NOVEMBER DECEMBER Inventory Purchases Salaries Advertising Shipping Misc Total CASH (RECEIPTS AND DISBURSEMENTS) BUDGET (Use Suggested Format Below) OCTOBER NOVEMBER DECEMBER Beginning Cash Balance Cash Collections Total Cash Available Cash Disbursements Inventory Purchases Salaries Advertising Shipping Misc Dividends Copy Machine Equipment Cash Disbursements Net Current Month Cash Loan Proceeds Loan Repayment Interest Paid Interest Paid Ending Cash Balance

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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, 2021 and projected sales for October, November and December, 2021 and January 2022 are as follows:

September $280,000

October $400,000

November $600,000

December $1,800,000

January $700,000

Monthly sales are 32% on cash and 68% on credit. Customer payments on credit sales are collected as follows: 27% in the month of sale and 73% in the month following the month of sale.

At September 30 ABCD Corp had outstanding accounts receivable of $190,400 and are a result of September credit sales. This amount will be collected as follows: 100% in October.

ABCD Corps Gross Profit Percentage is 63%. Therefore Cost of Goods Sold comprise 37% of monthly sales.

Monthly Expenses are budgeted as follows. All expense amounts are paid in the month they are incurred.

Sales and Wages: $31,000 per month
Advertising: $74,000 per month
Shipping: 7% of Sales
Miscellaneous Expenses: $10,000 + 6% of sales

Depreciation Expense is expected to be $42,000 each quarter.

ABCDs Ending Inventory at September 30 is $44,400. Ending Inventory for October, November and December should equal 30% of the following months Cost of Goods Sold.

60% of inventory purchases are paid for in the month of purchase; the remaining 40% paid for in the following month. At September 30 the Company still owed $72,000 to vendors for their September inventory purchases---this amount will be paid in October.

During October, the company plans to purchase a new copy machine for $200,000 cash. During December, other equipment will be purchased for cash at a cost of $30,000.

During November, the company will declare and pay $100,000 in cash 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.

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EXPENSE CASH DISBURSEMENT BUDGET (NOTE: THIS BUDGET SHOULD INCLUDE TOTAL CASH DISBURSEMENTS FOR INVENTORY PURCHASES, SALARIES, ADVERTISING, SHIPPING AND MISCELLANEOUS EXPENSES (Use Suggested Format Below) OCTOBER NOVEMBER DECEMBER Inventory Purchases Salaries Advertising Shipping Misc. Total CASH (RECEIPTS AND DISBURSEMENTS) BUDGET (Use Suggested Format Below) OCTOBER NOVEMBER DECEMBER Beginning Cash Balance Cash Collections Total Cash Available: Cash Disbursements: Inventory Purchases Salaries Advertising Shipping Misc Dividends Copy Machine Equipment Cash Disbursements = Net Current Month Cash Loan Proceeds Loan Repayment Interest Paid Interest Paid Ending Cash Balance