Camden Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks:

Required

October sales are estimated to be $125,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 8 percent per month. Prepare a sales budget.

The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts.

The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next months cost of goods sold. However, ending inventory of December is expected to be $6,000. Assume that all purchases are made on the account. Prepare an inventory purchases budget.

The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. Prepare a cash payments budget for inventory purchases.

Budgeted selling and administrative expenses per month follow:

Salary expense (fixed)	$	9,000
Sales commissions		5	% of Sales
Supplies Expense		2	% of Sales
Utilities (fixed)	$	700
Depreciation on store fixtures (fixed)*	$	2,000
Rent (fixed)	$	2,400
Miscellaneous (fixed)	$	600

*The capital expenditures budget indicates that Camden will spend $82,000 on October 1 for store fixtures, which are expected to have a $10,000 salvage value and a three-year (36-month) useful life.

Use this information to prepare a selling and administrative expenses budget.

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. Prepare a cash payments budget for selling and administrative expenses.

Camden borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $6,000 cash cushion. Prepare a cash budget.

Camden Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks:

Prepare a pro forma income statement for the quarter.

Prepare a pro forma income statement for the quarter.

CAMDEN COMPANY
Pro Forma Income Statement
For the Quarter Ended December 31, 2019
Sales revenue	$405,800
Cost of goods sold	243,480
Gross margin	162,320
Selling and administrative expenses	72,506
Operating Income	89,814
Interest expense
Net income	$87,774

The interest expense value is:???

Prepare a pro forma balance sheet at the end of the quarter.

Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.)

CAMDEN COMPANY
Pro Forma Balance Sheet
December 31, 2019
Assets
Cash
Inventory
		0
Total assets		$0
Liabilities
Equity
Total liabilities and equity		$0

Prepare a pro forma statement of cash flows for the quarter.

Prepare a pro forma statement of cash flows for the quarter. (Amounts to be deducted should be indicated by a minus sign.)

CAMDEN COMPANY
Pro Forma Statement of Cash Flows
For the Quarter Ended December 31, 2019
Cash flows from operating activities
Cash receipts from customers
Cash payments for interest expense
Cash payments for selling and administrative expenses
Cash payments for inventory
Net cash flows from operating activities		$0
Cash flows from investing activities
Cash flow from financing activities
Net inflow from line of credit
		0
		0
		$0