ect Help Save & Exi Jordan Company is a retail company that specializes in seling outdoor camping equipment. The company is considering opening a new store on October 1,2019 The company president formed a planning committee to prepare a master budget for the first three months of operation As budget coordinator, you have been assigned the following tasks: Problem 14-23 Part 1 Required a. October sales are estimated to be $200,000, of which 35 percent willbe cash and 65 percent wll be credt. The company expects sales to increase at the rate of 25 percent per month, Prepare a sales budget. company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts the next month's cost of goods sold. However, ending inventory of December is expected to be S12,800. Assume that all purchases Prepare a cash payments budget for inventory purchases c. The cost of goods sold is 60 percent of sales. The compony desres to maintain a minimum ending inventory equal to 10 percent of d. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the foilowing month. e. Budgeted seling and administrative expenses per month follow 18,800 5 t of Sales 2 of Bales Sales comnissiona Supplies expense rilities Ifixed) Depreciation on store fixtures (fixedj4,8c s 2,200 Rest tined) s5.00 Niscel1aceous (fixed) The capital expenditures budget indicates that Jordan will spend $200.800 on October 1 for store fixtures, which are expected to have a $28,000 salvage value and a three-year (36-month) useful life. Use this information to prepare a selling and administrative expenses budget t Ublities and sales commissions are paid the month after they are incurred: all other expenses are Prev 1 2 f2 Next >