Bountiful is a retail company that sells specialized gardening products. The company is considening opening a new store on October 1, Year1. As budget coordinator, you have been asked to prepare a master budget for the first 3 months of the company's operation. You have gathered the following information October sales are estimated to be $400000 af which 35 percent will be cash and the remainder will be on credit. The company expects all sales to increase at the rate of 10 percent per month for November and December. Sales in January Year 2 are expected to be $300000. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a sales budget and a schedule of cash receipts using these facts and your excel template. Check your answers here before moving to the next part, by completing the cells requested in the chart below a. Sales Budget Cash sales Sales on account Total budgeted sales October November December Total-Otr b. Schedule of Cash Receipts Current cash sales Plus collections from AR Total collections October November December Total-Qtr The oost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month's cost of goods sold. (Ending inventory for December is based on budgeted January Year2 sales.) Assume that all inventory purchases are made on account (on credit). The company pays 60 percent of accounts payable in the month of purchase and the remaining amount in the ollowing month. In excel, prepare an inventory purchases budget and a cash payments budget for inventory purchases. Use the check figures below before you continue. Inventory Purchases Budget October November December Total-Qtr oost of goods sold s desired ending inventory ess beginning inventory purchases (on account d. Cash payments for inventory Payment of current month's A/P Payment for prior month's A/P Total budgeted payments October November December Total-Qtr Budgeted selling and administrative expenses per month follow Salary expense (fixed) S 32800 Sales commissions: 4 percent of Sales Supplies expense: 3 percent of Sales Utilities (fixed) $1700 Depreciation on store equipment (fixed): You compute . . .Rent (foxed) S 15000 Miscellaneous (fixed): S 800 The capital expenditures budget indicates that the company will spend $350000 on October 1 for store foxtures, which are expected to have a $20000 residual value and a 60 month useful life Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred In excel, prepare the selling and administrative expenses budget and the cash payments budget for selling and administrative expenses. Check the key figures below Selling and Admin.Expense Budget Salary expense Sales commissions Supplies expense Utlities Depreciation on store fixtures Rent October NovemberDecember Total-Qtr Total S&A expenses Total-Qtr . Cash payments for S&A Salary expense Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent October Total payments for S&A expenses Bountiful issued stock for 250000 on October 5. A dividend of $80000 was paid on December 15. The company borrows and repays funds in increments of $1,000 on the last day of the month. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month Prepare a cash budget on your excel template. Check key figure below in cash on the last day of the month. To be prudent, the company desires to maintain a $23000 cash cushion. g.Cash Budget Beginning cash balance Issuance of stock October November December Total-Qtr Cash available For S&A expenses Purchase of store fotures Pay dividend Interest expense Total budgeted payments Financing activity Ending cash balance Use your excel spreadsheet, completed as part of Question 1, to complete the following budgets for Bountiful Company. Budget h. Income statement for the quarter ended December 21, Year Budget i. Balance sheet as of December 31, Year1 Note: This is one large problem so for full credit all answer boxes must be correct at the same time. Resubmit until they are all correct. Income statement Input expenses as negatives. Use a minus sign in front of the number Sales revenue Cost of goods sold Gross margin S&A expenses Operating income Interest expense Net income Balance Sheet Enter any contra-assets as negative numbers. Use a minus sign Assets Cash Accounts receivable Inventory Store fixtures Accumulated depreciation Total assets Liabilitiess Accounts payable Utilities payable Sales commissions payable Line of credit liability Total liabilities Equity Common stock Retained earnings Total equity Total liabilities and equity