Franklin 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 $$180,000,$ of which $40$ percent will be cash and $60$ 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 goods sold is $60$ percent of sales. The company desires to maintain a minimum ending inventory equal to $10$ percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $$12,600.$ Assume that all purchases are made on account. Prepare an inventory purchases budget.

d$.$ The company pays $70$ percent of accounts payable in the month of purchase and the remaining $30$ percent in the following month. Prepare a cash payments budget for inventory purchases.

e$.$ Budgeted selling and administrative expenses per month follow:

$\backslash$table$[[$Salary expense $($fixed$),$$$18,600$