Comden Company is a retail company that specializes in selling outdoor comping equipment. The company is considering opening a new store on October $1.$ year $1.$ The compony president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you hove been assigned the following tosks.

Part $1$ of $2$

Problem $14-23$A $($Static$)$ Parts a to g

$10$

points

Required

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

b$.$ The company expects to collect $100$ percent of the accounts receivable generated by credit soles in the month following the sole. Prepare a schedule of cosh receipts.

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

d$.$ The company pays $70$ percent of accounts poyable in the month of purchase ond the remaining $30$ percent in the following month. Prepore o cosh payments budget for inventory purchases.

e$.$ Budgeted selling and administrative expenses per month follow. Use this information to prepore a selling and administrative expenses budget.

Salary expense $($fixed$)$

Sales cormissions

Supplices expense

Utilities $($fixcd$)$

Deprecistion on store fixtures $($fixed$)*$

Rent $($fixed$)$

Miscellanecus $($fixed$)$

$$9,0005x$ of sales $2x$ of sales $$7002,0002,400$ $$600$

"The copitol expenditures budget indicates that Comden will spend $$82,000$ on October $1$ for store fixtures, which are expected to hove a $$10,000$ salvoge value and a three$-$year $(36-$month$)$ useful life.

Use this information to prepare a selling and odministrative expenses budget

f$.$ Utilities and soles commissions ore poid the month sfter they ore incurred; oll other expenses ore poid in the month in which they ore incurred. Prepore a cosh payments budget for selling and odministrotive expenses.

g$.$ Comden borrows funds, in increments of $$1,000,$ and repoys them on the lost day of the month. Repaymente may be mode in any omount ovailoble. The compony olso poys its vendors on the last doy of the month. It pays interest of $1$ percent per month in cosh on the lost doy of the month. To be prudent, the compony desires to maintsin $86,000$ cosh cushion. Prepore o cosh budget.

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Required B

Required D

Required $E$

Required $F$

Required G

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.

$\backslash$table$[[$Sales Budget,,October,November,Decamber$],[$Cash sales,,$125,000ox,,],[$Sales on account,,,,$T$