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Req A1 Req A2 Req A3 Based on the following information, prepare a sales budget and a schedule of cash receipts for October, November, and December. Sales for October are expected to be $180,000, consisting of $40,000 in cash and $140,000 on credit. The company expects sales to increase at the rate of 10 percent per month. All accounts receivable are collected in the month following the sale. Show less October November December $ 40,000 $ 140,000 180,000 $ 44,000 154,000 198,000 48,400 169,400 217,800 $ $ Sales Budget Cash sales Sales on account Total budgeted sales Schedule of Cash Receipts Cash sales Collections from accounts receivable Total cash collections $ 40,000 $ 60,000 100,000 $ 44,000 $ 140,000 184,000 $ 48,400 154,000 202,400 Req A1 Req A2 Reg A3 Based on the following information, prepare a purchases budget and a schedule of cash payments for inventory purchases for October, November, and December. The inventory balance as of October 1 was $40,000. Cost of goods sold for October is expected to be $72,000. Cost of goods sold is expected to increase by 10 percent per month. The company expects to maintain a minimum ending inventory equal to 20 percent of the current month cost of goods sold. Seventy-five percent of accounts payable is paid in the month that the purchase occurs; the remaining 25 percent is paid in the following month. Show less Inventory Purchases Budget October November December Budgeted cost of goods sold $ 72,000 $ 79,200 $ 87,120 Plus: Desired ending inventory 14,400 15,840 17,424 Inventory needed 86,400 95,040 104,544 Less: Beginning inventory 40,000 14,400 15,840 Required purchases (on account) $ 46,400 $ 80,640 $ 88,704 Schedule of Cash Payments Payment of current months' accounts payable $ 34,800 $ 60,480 $ 66,528 Payment for prior month's accounts payable 72,000 11,600 20,160 Total budgeted payments for inventory $ 106,800 $ 72,080 $ 86,688 Req A1 Req A2 Req A3 Based on the following selling and administrative expenses budgeted for October, prepare a selling and administrative expenses budget for October, November, and December. Sales commissions Supplies expense Utilities Depreciation on store equipment Salary expense Rent Miscellaneous Total S&A expenses October November December $ 7,200 $ 7,920 $ 8,712 1,800 1,980 2,178 2,200 2,200 2,200 1,600 1,600 1,600 34,000 34,000 34,000 6,000 6,000 6,000 1,000 1,000 1,000 $ 53,800 $ 54,700 $ 55,690 2 Required information [The following information applies to the questions displayed below.) Part 2 of 3 The following trial balance was drawn from the records of Havel Company as of October 1, year 2. $ 16,000 60,000 40,000 200,000 Cash Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Totals $ 76,800 72,000 100,000 50,000 17,200 $316,000 $316,000 b. Supply the missing information in the following pro forma income statement and balance sheet for the fourth quarter of year 2. The statements are prepared as of December 31, year 2. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Supply the missing information in the following pro forma balance sheet for the fourth quarter of year 2. The statement is prepared as of December 31, year 2. (Amounts to be deducted should be indicated by a minus sign.) Balance Sheet $ 9,760 $ 200,000 118,400 $ 314,984 Assets Cash Accounts receivable Inventory Store equipment Accumulated depreciation store equipment Book value of equipment Total assets Liabilities Accounts payable Utilities payable Sales commissions payable Line of credit Equity Common stock Retained earnings Total liabilities and equity 23,936 50,000 $ 314,984
