Capriis a retail company that sells specialized gardening products. The company is considering 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 companys operation. You have gathered the following information:

Note to tutor: budget. due by Apr 21, 11pm, est usa need to create a budget using the excel template, formulas must be created in the excel sheet along with detailed information on how the information was obtained. copy/pasta will not be enough as i actually want to learn how this is done. the more detail the better. information for the excel sheet can be found in the word document. thank you Capri is a retail company that sells specialized gardening products. The company is considering 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 $200000 of which 45 percent will be cash and the remainder will be on credit. The company expects all sales to increase at the rate of 20 percent per month for November and December. Sales in January Year 2 are expected to be $220000. 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 October November December Total-Qtr October November December Total-Qtr Cash sales Sales on account Total budgeted sales b. Schedule of Cash Receipts Current cash sales Plus collections from A/R Total collections The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 40 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 following month. In excel, prepare an inventory purchases budget and a cash payments budget for inventory purchases. Use the check figures below before you continue. c. Inventory Purchases Budget October November December Total-Qtr Budgeted cost of goods sold Plus desired ending inventory Inventory needed Less beginning inventory Required purchases (on account) d. Cash payments for inventory October November December Total-Qtr Payment of current month's A/P Payment for prior month's A/P Total budgeted payments Budgeted selling and administrative expenses per month follow. Salary expense (fixed): $ 18700 Sales commissions: 4 percent of Sales Supplies expense: 1 percent of Sales Utilities (fixed): 1600 Depreciation on store equipment (fixed)*: You compute Rent (fixed) $ 8000 Miscellaneous (fixed): $ 940 *The capital expenditures budget indicates that the company will spend $77500 on October 1 for store fixtures, which are expected to have a $5500 residual value and a 36 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. e. Selling and Admin.Expense Budget Salary expense Sales commissions Supplies expense Utilities Depreciation on store fixtures October November December Total-Qtr Rent Miscellaneous Total S&A expenses f. Cash payments for S&A Salary expense October November December Total-Qtr Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total payments for S&A expenses Capri issued stock for 62000 on October 5. A dividend of $31000 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 in cash on the last day of the month. To be prudent, the company desires to maintain a $20000 cash cushion. Prepare a cash budget on your excel template. Check key figure below. g. Cash Budget Beginning cash balance Issuance of stock Collections from customers Cash available Less payments For inventory purchases For S&A expenses Purchase of store fixtures Pay dividend Interest expense Total budgeted payments Cash balance before borrow/repay Financing activity Borrowing (repayment) Ending cash balance October November December Total-Qtr Pts. a. Sales Budget 6 Cash sales Sales on account Total budgeted sales b. Schedule of Cash Receipts 8 Current cash sales Plus collections from A/R Total collections c. Inventory Purchases Budget 10 Budgeted cost of goods sold Plus desired ending inventory Inventory needed Less beginning inventory Required purchases (on account) October November December Total-Qtr October November December Total-Qtr October November December (Hint- these do not all just get adde Total-Qtr check math vertically too d. Schedule of Cash Payments Budget for Inventory Purchases 6 October Payment of current month's A/P Payment for prior month's A/P Total budgeted payments e. November December Total-Qtr November December Total-Qtr December Total-Qtr Selling and Administrative Expense Budget 6 October Salary expense Sales commissions expense Supplies expense Utilities Expense Depreciation expense on store fixtures Rent expense Miscellaneous expense Total S&A expenses f. Schedule of Cash Payments for S&A Expenses (Some balances may be zero.) 8 October November Salaries Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total payments for S&A expenses g. Cash Budget 16 Beginning cash balance Issuance of stock Collections from customers Cash available Less payments For inventory purchases For S&A expenses Purchase of store fixtures Pay dividend Interest expense Total budgeted payments Cash balance before borrow/repay Financing activity Borrowing (repayment) Ending cash balance December (Hint- these do not all just get adde Total-Qtr BUDGETS H and I below must be completed in OWL, question 2 for grading. You can do them below, if it helps you. They will not be graded as part of the excel part of the project. Pro Forma Income Statement For the Quarter Ended December 31, Year1 Sales revenue Cost of goods sold Gross margin S&A expenses Operating income Interest expense Net income i. November check math vertically too 60 h. October Pro Forma Balance Sheet For the Quarter Ended December 31, Year1 Assets Cash Accounts receivable Inventory Store fixtures Accumulated depreciation Total assets Liabilities Accounts payable Utilities payable Sales commissions payable Line of credit liability Total liabilities Equity Common stock Retained earnings Total equity Total liabilities and equity nt- these do not all just get added across!) nt- these do not all just get added across!)