Getaway estimates January sales will be $$600,000,$ of which $$200,000$ will be cash and $$400,000$ will be credit. The ratio of cash sales to sales on account is expected to remain constant over the four$-$month period. The company expects sales to increase $10$ percent per month. The company expects to collect $100$ pencent of the accounts receivable generated by credit sales in the month following the sale.

c$-1.$ Prepare a sample sales budget using the assumptions for requirement c$.$ Use this information to determine the amount of accounts receivable that Getaway would report on the March $31$ pro forma balance sheet and the amount of sales it would report on the first quarter pro forma income statement.

c$-2.$ Prepare a schedule of expected cash receipts using the assumptions for requirement c$.$ Use this information to determine the amount of accounts receivable that Getaway would report on the March $31$ pro forma balance sheet and the amount of sales it would report on the first quarter pro forma income statement.

Assumptions for requirement d:

Cost of goods sold is $70$ percent of sales. The company desires to maintain a minimum ending inventory equal to $30$ percent of the following month's cost of goods sold. Getaway makes all inventory purchases on account. The company pays $70$ percent of accounts payable in the month of purchase. It pays the remaining $30$ percent in the following month.

d$-1.$ Prepare a sample inventory purchases budget using th $9$ ssumptions for requirement d$.$ Use this information to determine the amount of cost of goods sold Getaway would report on the first quarter pro forma income statement and the amounts of ending inventory and accounts payable it would report on the March $31$ pro forma balance sheet.

d$-2.$ Prepare a schedule of expected cash payments for inventory purchases using the assumptions for requirement d$.$ Use this information to determine the amount of cost of goods sold Getaway would report on the first quarter pro forma income statement and the amounts of ending inventory and accounts payable it would report on the March $31$ pro forma balance sheet.

Complete thls question by entering your answers in the tabs below.

RE$4$CZ

Req D$1$

Req. D$2$

Prepare a sample inventory purchases budget using the assumptions for requirement $d.$ Use this information to determine the amount of cost of goods sold Getaway would report on the first quarter pro forma income statement and the amounts of ending inventory and accounts payable it would report on the March $31$ pro forma balance sheet.

Noter Amaunts to be deducted should be entered with a minus sign.

Show less i