Hello, I am looking for help on the Cash Budget portion of this problem. I was able to fill out the rest (parts a-f) but I keep getting the cash budget (part g) wrong. I need to fill out all parts of the table. I also need help on part D. I was able to check all other inputs and all were correct besides that one part with the X- mark. However, my focus is on completing the Cash Budget correctly so if I can get help with that first and foremost I would really appreciate it.

Deluxe is a retail company that sells specialized gardening products. The company is considering opening a new store on October 1, Year1. As budget coordinator, you have been asked to prepare a master budget for the first 3 months of the companys operation. You have gathered the following information:

October sales are estimated to be $200000 of which 45 percent will be cash and the remainder will be on credit. The company expects all sales to increase at the rate of 20 percent per month for November and December. Sales in January Year 2 are expected to be $220000.

The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale.

Prepare a sales budget and a schedule of cash receipts using these facts and your excel template. Check your answers here before moving to the next part, by completing the cells requested in the chart below.

a. Sales Budget	October	November	December	Total-Qtr
Cash sales	90,000	108,000	129,600	327,600
Sales on account	110,000	132,000	158,400	400,400
Total budgeted sales	200,000	240,000	288,000	728,000

b. Schedule of Cash Receipts	October	November	December	Total-Qtr
Current cash sales	90,000	108,000	129,600	327,600
Plus collections from A/R	0	110,000	132,000	242,000
Total collections	90,000	218,000	261,600	569,600

The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 40percent of the next months cost of goods sold. (Ending inventory for December is based on budgeted January Year2 sales.)

Assume that all inventory purchases are made on account (on credit). The company pays 60 percent of accounts payable in the month of purchase and the remaining amount in the following month.

In excel, prepare an inventory purchases budget and a cash payments budget for inventory purchases. Use the check figures below before you continue.

c. Inventory Purchases Budget	October	November	December	Total-Qtr
Budgeted cost of goods sold	140,000	168,000	201,600	509,600
Plus desired ending inventory	67,200	80,640	61,600	61,600
Inventory needed	207,200	248,640	263,200	571,200
Less beginning inventory	0	67,200	80,640	0
Required purchases (on account)	207,200	181,440	182,560	571,200

d. Cash payments for inventory	October	November	December	Total-Qtr
Payment of current month's A/P	124,320	108,864	125,376	358,560
Payment for prior month's A/P	0	82,880	72,576	155,456
Total budgeted payments	124,320	191,744	197,952	514,016

Budgeted selling and administrative expenses per month follow.

Salary expense (fixed): $ 18700

Sales commissions: 4 percent of Sales

Supplies expense: 1 percent of Sales

Utilities (fixed): $1600

Depreciation on store equipment (fixed)*: You compute

Rent (fixed) $ 8000

Miscellaneous (fixed): $ 940

*The capital expenditures budget indicates that the company will spend $77500 on October 1 for store fixtures, which are expected to have a $5500 residual value and a 36 month useful life.

Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred.

In excel, prepare the selling and administrative expenses budget and the cash payments budget for selling and administrative expenses. Check the key figures below.

e. Selling and Admin.Expense Budget	October	November	December	Total-Qtr
Salary expense	18,700	18,700	18,700	56,100
Sales commissions	8,000	9,600	11,520	29,120
Supplies expense	2,000	2,400	2,880	7,280
Utilities	1,600	1,600	1,600	4,800
Depreciation on store fixtures	2,000	2,000	2,000	6,000
Rent	8,000	8,000	8,000	24,000
Miscellaneous	940	940	940	2,820
Total S&A expenses	41,240	43,240	45,640	130,120

f. Cash payments for S&A	October	November	December	Total-Qtr
Salary expense	18,700	18,700	18,700	56,100
Sales commissions	0	8,000	9,600	17,600
Supplies expense	2,000	2,400	2,880	7,280
Utilities	0	1,600	1,600	3,200
Depreciation on store fixtures	0	0	0	0
Rent	8,000	8,000	8,000	24,000
Miscellaneous	940	940	940	2,820
Total payments for S&A expenses	29,640	39,640	41,720	111,000

Deluxe issued common stock for $62000 on October 5.

A dividend of $31000 was paid on December 15.

The company borrows and repays funds in increments of $1,000 on the last day of the month. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $20000 cash cushion.

Prepare a cash budget on your excel template. Check key figure below.

g. Cash Budget	October	November	December	Total-Qtr
Beginning cash balance
Issuance of stock
Collections from customers
Cash available
Less payments
For inventory purchases
For S&A expenses
Purchase of store fixtures
Pay dividend
Interest expense
Total budgeted payments
Cash balance before borrow/repay
Financing activity
Borrowing (repayment)
Ending cash balance