Dollar Saver Store is a local discount store with the following information EEB Click the icon to view the information.) Read the requirements. October sales are projected to be $370,000 Sales are projected to increase by 12% in November and another 20% in December and then return to the October level in January 25% of sales are made in cash while the remaining 75% are paid by credit or debit cards. The credit card companies and banks (debit card issuers) charge a 5% transaction fee, and deposit the net amount (sales price less the transaction fee) in the store's bank account daily. The store does not accept checks. Because of the payment mechanisms, there is no risk of non-payment or bad-debts Requirement 1. Prepare the sales budget for November and December Dollar Saver Store Sales Budget For the Months of November and December November The store's gross profit is 40% of its sales revenue For the next several months, the store wants to maintain an ending merchandise inventory equal to $14,000 plus 25% of the next month's cost of goods sold. All purchases for merchandise are made on account and paid in the month following the purchase. The September 30 inventory is expected to be $69,500 December Cash sales Credit sales Total sales Expected monthly operating expenses and details about payments include the following: Wages of store workers should be $7,700 per month and are paid on the last day of each month Utilities expense is expected to be $1,500 per month in September, October, and Utilities expense is expected to be $1,700 per month during the colder months of December, January, and February All utility bills are paid the month after incurred. Property tax is $25,200 per year and is paid semiannually each December and June Property and liability insurance is $15,600 per year and is paid semiannually each January and July iRequirements Prepare the following budgets for November and December: 1. Sales budget 2. Cost of goods sold, inventory, and purchases budget 3. Operating expense budget 4. Budgeted income statement Cash collections budget Cash payments budget 5. 6. Print Done Dollar Saver Store is a local discount store with the following information EEB Click the icon to view the information.) Read the requirements. October sales are projected to be $370,000 Sales are projected to increase by 12% in November and another 20% in December and then return to the October level in January 25% of sales are made in cash while the remaining 75% are paid by credit or debit cards. The credit card companies and banks (debit card issuers) charge a 5% transaction fee, and deposit the net amount (sales price less the transaction fee) in the store's bank account daily. The store does not accept checks. Because of the payment mechanisms, there is no risk of non-payment or bad-debts Requirement 1. Prepare the sales budget for November and December Dollar Saver Store Sales Budget For the Months of November and December November The store's gross profit is 40% of its sales revenue For the next several months, the store wants to maintain an ending merchandise inventory equal to $14,000 plus 25% of the next month's cost of goods sold. All purchases for merchandise are made on account and paid in the month following the purchase. The September 30 inventory is expected to be $69,500 December Cash sales Credit sales Total sales Expected monthly operating expenses and details about payments include the following: Wages of store workers should be $7,700 per month and are paid on the last day of each month Utilities expense is expected to be $1,500 per month in September, October, and Utilities expense is expected to be $1,700 per month during the colder months of December, January, and February All utility bills are paid the month after incurred. Property tax is $25,200 per year and is paid semiannually each December and June Property and liability insurance is $15,600 per year and is paid semiannually each January and July iRequirements Prepare the following budgets for November and December: 1. Sales budget 2. Cost of goods sold, inventory, and purchases budget 3. Operating expense budget 4. Budgeted income statement Cash collections budget Cash payments budget 5. 6. Print Done