Dryden Industries Budgeting Problem Dryden Industries, a wholesale company, is considering whether to open a new distribution center. The center would open October 1, 2022. To make the decision, the planning committee requires a master budget for the center's first quarter of operation (October, November and December of 2022). Required Construct the first quarter master budget based on the following expectations: a. October sales are estimated to be $600,000 of which $120,000 will be cash sales and $480,000 will be on credit. The company expects sales to grow 8% per month for the first few months of operation. Prepare a sales budget for the first quarter. b. d. The company expects to collect 25% of accounts receivable in the month following the sale and 75% the month after that. Prepare a schedule of expected cash receipts for the first quarter. Cost of goods sold will be 65% of sales. Company policy is to budget an ending inventory balance equal to 20% of the next month's projected cost of goods sold. Assume Elliott expects January 2023 cost of goods sold to be $490,000. Prepare an inventory purchases budget. All inventory purchases are on account. The company pays 50% of accounts payable in the month of purchase. It pays the remaining 50% in the following month. Prepare a schedule of expected cash payments for inventory purchases. are: Budgeted monthly selling and administrative expenses Salary Expense (Fixed) Sales Commissions Supplies Expense Utilities (Fixed) Rent (Fixed) $35,000 6% of Sales 5000 $2,400 Depreciation on Center Equipment (Fed),750 Miscellaneous (Fixed) $5,000 $ 900 *The capital expenditures budget shows that Elliott must purchase $125,000 of equipment on January 1 to establish the new center. The equipment supplier allows a thirty-day trial period. Elliott will pay for the equipment on October 31. The equipment is expected to have a 7- d. the month after that. Prepare a schedule of expected cash receipts for the first quarter. Cost of goods sold will be 65% of sales. Company policy is to budget an ending inventory balance equal to 20% of the next month's projected cost of goods sold. Assume Elliott expects January 2023 cost of goods sold to be $490,000. Prepare an inventory purchases budget. All inventory purchases are on account. The company pays 50% of accounts payable in the month of purchase. It pays the remaining 50% in the following month. Prepare a schedule of expected cash payments for inventory purchases. are: Budgeted monthly selling and administrative expenses Salary Expense (Fixed) Sales Commissions Supplies Expense Ubilities (Fixed) Rent (Fixed) $35,000 6% of Sales 5000 $2,400 Depreciation on Center Equipment (FSed,750 Miscellaneous (Fixed) $5.000 $ 900 *The capital expenditures budget shows that Elliott must purchase $125,000 of equipment on January 1 to establish the new center. The equipment supplier allows a thirty-day trial period. Elliott will pay for the equipment on October 31. The equipment is expected to have a 7- year useful life and a $10,000 salvage value. Prepare a selling and administrative expense budget. f. Sales commissions are paid in the month after the month in which they are incurred. All other expenses are paid in the month they are incurred. Prepare a schedule of cash payments for selling and administrative expenses. Using a line of credit, Elliott borrows and repays principal in increments of $1,000 on the last day of the month as needed. It pays interest of .75 percent per month in cash on the last day of the month. Company policy is to maintain an ending cash balance of at least $18,000. Use this information and the schedules produced above to prepare a cash budget.