Create a Cash Budget and a Selling and Admin Budget

LIABILITIES \& STOCKHOLDERS EQUITY TOTAL LIABILITIES \& STOCKHOLDERS EQUITY $998,988 Expected Sales (all sales are credit sales) September $900,000 November Collections of Accounts Receivable Month of Sale Month following Sale Cost of Goods Sold percentage of sales Inventory Purchase Information Purchases paid in current month Purchases paid in next month Purchases are all on credit Planned ending inventory as a percentage of next month's Cost of Goods Sold Sales Commission Information Sales commissions as a percentage of sales Sales commissions are paid the month after they are incurred. Advertising Expense Information Variable Rate Fixed Cost $800,000 $980,000 Insurance policy Information \# of months of insurance coverage paid for each year The policy period is from August 1 to July 31 each year The premium was paid on July 31,2023 The premium will be charged to prepaid insurance General and Administrative Expense Information Fixed cost portion Variable rate (as a percentage of sales) Selling and administrative expenses are paid in the month incurred Fixed Asset Information Purchase Land on September 15, 2023 Current Depreciation expense per month Sold Land at Book Value on September 15, 2023 Long-Term Loan Interest Information The interest rate on the long-term debt per month is Interest is paid on the principle balance at the beginning of the month Minimum Cash Balance New borrowing must be in $1,000 increments Tax Information Income tax rate Taxes are paid in the month after they are incurred (expensed) Dividend Information Cash dividend declared on September 20, 2023 Cash dividend paid on October 15, 2023 > Academic Honesty Budget Data Beginning Balance