Additional information and questions on second picture. Thanks

Problem 8.37 Cash Budget, Pro Forma Balance Sheet Bernard Creighton is the controller for Creighton Hardware store. In putting together the cash budget for the fourth quarter of the year, he has assembled the following data. a. Sales July (actual) $100,000 August (actual 120,000 September (estimated) 90,000 October (estimated) 100,000 November (estimated) 135,000 December (estimated) 150,000 b. month, percent of sales are for cash, and 80 percent are on credit. The collection pattern for credit sales is 20 percent in the month of sale, 50 percent in the following month, and 30 percent in the second month following the sale. c. ach month, the ending inventory exactly equals 40 percent of the cost of next month's sales. The markup on goods is 33.33 percent of cost. d. Inventory purchases are paid for in the month following purchase. e. Recurring monthly expenses are as follows: S10,000 Salaries and wages 4,000 Depreciation on plant and equipment 1,000 Utilities 1,700 Other (continued)