Finch Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1 year 1 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 Required a. October sales are estimated to be $340,000, of which 35 percent will be cash and 65 percent will be credit. The company expects sales to increase at the rate of 20 percent per month Prepare a sales budget b. The 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. c. The cost of goochi sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $12 500 Assume that all purchases are made on account. Prepare an inventory purchases budget d. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the following month Prepare a cash payments budget for inventory purchases e. Budgeted selling and administrative expenses per month follow Salary expense (fixed) Sales comissions S10.500 43 of Sales Supplies expense 2X of Sales utilities (fixed) 51.90 Depreciation on store fixtures (fixed) $ 4,50 Hent (fixed) $ 5,10 Miscellaneous (fixed) $ 1,700 *The capital expenditures budget indicates that Finch will spend $133.000 on October for store futures, which are expected to have a $25,000 salvage value and a two year (24 month) useful life Use this information to prepare a song and administrative expenses budget t. Utilities and sales commissions are paid the month after they are incurred, off other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses 9. Finch borrows funds in increments or $1000, and repays them on the last day of the month Pepayments may be made in any amount available. The company also pays its vendors on the last day of the month it pays Interest of 2 percent per month in cash on the last day of the month To be prudent the company desires to maintain a 517000 coth cushion Prepare a cash budget h. Prepare a pro forma income statement for the quarter L Prepare a pro forma balance sheet at the end of the quarter 111 Neid Complete this question by entering your answers in the tabs below. Required A Required B Required required D Required E Required F Required G Required H Required 1 Required) October sales are estimated to be $340,000, of which 35 percent will be cash and 65 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget Datober November December Sales Budget Cash sales Sales on account Total budgeted sales 5 05 05 Red Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Required G Required H Required 1 Required) The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts. October November December Schedule of Cash Receipts Current cash sales Plus collections from AR Total collections ol 5 0$ 0 Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Required G Required H Required 1 Required) The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month's cost of goods sold. However, ending Inventory of December is expected to be $12,500. Assume that all purchases are made on account. Prepare an inventory purchases budget. October November December Inventory Purchases Budget 0 Inventory needed $ 0 $ 0 $ 0 Requited purchases (on account) Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required e Required F Required G Required H Required! Required) The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the following month. Prepare a cash payments budget for inventory purchases (Round your final answers to the nearest whole dollar amounts.) November December October Schedule of Cash Payments Budget for inventory Purchases Payment of current month's accounts payable Payment for prior month's accounts payable Total budgeted payments for inventory $ 05 0 $ 0 Complete this question by entering your answers in the tabs below. 1 Required A Required B Required required Required Required Required required H Heuredt Required: Prepare a selling and administrative expenses budget. December October November Selling and Administrative Expense Budget Salary expense Sales commissions Supplies expense Uuties Depreciation on store foxtures Rent Miscellaneous Total expenses $ 0 $ 0 Finch borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays its vendors on the last day of the month. It pays interest of 2 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $17,000 cash cushion. Prepare a cash budget. (Any repayments should be indicated with a minus sign.) Show less Cash Budget October Section 1 Cash Receipts November December Total cash available Section 2 Cash Payments 0 0 0 0 0 Total budgeted disbursements Section 3 Financing Activities 0 0 0 5 05 05 VE Huy a veureuy. on the last day of the month To be prudent, the company desires to maintain a $17,000 cash cushion Prepare a cash budget h. Prepare a pro forma income statement for the quarter I. Prepare a pro forma balance sheet at the end of the quarter, J. Prepare a pro forma statement of cash flows for the quarter Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required Required F Required Required H Requiredt Required) Prepare a pro forma income statement for the quarter. FINCH COMPANY Pro Forma Income Statement For the Quarter Ended December 31. Year 1 0 Complete this question by entering your answers in the tabs below. Required A Required B Required Required Required E Required Required Required H Required 1 Required) Prepare a pro forma statement of cash flows for the quarter. (Cash outflows should be indicated with a minussion) FINCH COMPANY Pro Forma Statement of Cash Flow For the Quarter Ended December 31 Year 1 Cash Bows from operating activities Net cash flows from operating activities Cash flows from investing activities 5 0 Cash flow from financing activities (Required He