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Discount Plus Store is a local discount store whithe folowing ine (Click the icon to view the information.) Data table Read the reguirements- - October

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Discount Plus Store is a local discount store whithe folowing ine (Click the icon to view the information.) Data table Read the reguirements- - October sales are projected to be $400,000. - Sales are projected to increase by 10% in November and another 20% in December and then return to the Oclober level in January. - 25% of sales are made in cash wtile the remaining 75% are paid by credit or debit cards. The credit card companies and banks (debit card issuers) charge a 2% transac5on fee, and deposit the net amount (sales price less the transaction lee) in the stere's bank account daly. The stere does not accopt checks. Because of the payment mechanisms, there is no risk of non-payment or bad-debts. - The store's gross profit is 30% of its sales revenue. - For the next several months, the store wants to maintain an ending merchandise inventory equal to Prepare the following budgets for November and December: $19,000 plus 15% of the next month's cost of goods sold. All purchases for merchandise are made 1. Sales budget on account and paid in the month following the purchase. The September 30 inventory is expected 2. Cost of goods sold, inventory, and purchases budget to be $61,000. 3. Operating expense budget 4. Budgeted income statement 5. Cash collections budget 6. Cash payments budget 7. Combined cash budget - Expected monthly operating expenses and details about payments include the following: - Wages of store workers should be $7,800 per month and are paid on the last day of each month. - Unities expense is expected to be $600 per month in September, October, and November. - Unities expense is expected to be \$1,100 per month during the colder months of December, Janciary, and February. - All utility bills are paid the month after incurred. - Property tax in $18,000 per year and is paid semiannually each December and June. - Property and liability insurance is 59,600 per year and is paid semiannualy each January and Juy. - Depreciation expense is 306.000 per year; the straight-ine method used. - Transaction fees, as stated earief, are 2% of credt and debit card sales. - Cash dividends of $200,000 are to be paid in December. - Assume the cash balance on October 31 is $60,000. The company wants to maintain a cash balance of at least $60,000 at the end of every month. - The company has arranged a line of credit with a local bank at a T% interest rate. There is no outstanding debt as of October 31

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