Help Required information [The following information applies to the questions displayed below.) Campbell 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 $370,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 30 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 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 $12,300. 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. Salary expense (fixed) Sales commissions Supplies expense This five $18,300 48 of Sales 28 of Sales e 1 any VICTOR RES PRIME Required Information percent of the next month's cost of goods sold. However, ending Inventory of December is expected to be $12,300. 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. Salary expense (fixed) $18,300 Sales commissions 4 of Sales Supplies expense 28 of Sales Utilities (fixed) $ 1,700 Depreciation on store fixtures fixed) $ 4,300 Rent (fixed) $ 5,100 Miscellaneous (fixed) $ 1,500 *The capital expenditures budget indicates that Campbell will spend $126,200 on October 1 for store fixtures, which are expected to have a $23,000 salvage value and a two-year (24-month) useful life. Use this information to prepare a selling and administrative expenses budget t. 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. Prepare a cash payments budget for selling and administrative expenses. g. Campbell borrows funds, in increments of $1000, 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 $15,000 cash cushion Prepare a cash budget. comnlate thie question hy entering voi ancwere in the tahe halow f. 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. Prepare a cash payments budget for selling and administrative expenses. g. Campbell 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 $15,000 cash cushion Prepare a cash budget. Complete this question by entering your answers in the tabs below. Required A Required B Required a Required Required E Required F Required G October sales are estimated to be $370,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 30 percent per months. Prepare a sales budget. October November December Sales Budget Cash sales Sales on account Total budgeted sales s os 0$ 0 Required B > YULIOL Selling and administrative expenses. g. Campbell 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 $15,000 cash cushion Prepare a cash budget. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Required G 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 $ 0 $ 0 $ De lidge mil 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 $15,000 cash cushion. Prepare a cash budget. Complete this question by entering your answers in the tabs below. Required A Required B Fequired Required D Required E Required F Required G 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 $12,300. Assume that all purchases are made on account. Prepare an inventory purchases budget. October November December Inventory Purchases Budget 0 0 Inventory needed $ Required purchases (on account) 0 $ 0 0 $ Mas paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses. g. Campbell 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 $15,000 cash cushion Prepare a cash budget. x Complete this question by entering your answers in the tabs below. ces Required A Required B Required chequired Required E Required Required G Required 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. (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 payment for inventory $ 0 $ 0 ME TUNNT CASH on the last day of the month. To be prudent, the company desires to maintain a $15,000 cash cushion Prepare a cash budget. Complete this question by entering your answers in the tabs below. Required A Required Required Required D Requred Required Required G Prepare a selling and administrative expenses budget. Required November December October Selling and Administrative Expense Budget Salary expense Sales commision Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total S&A expenses S 0$ o $ g. Campbell 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 $15,000 cash cushion Prepare a cash budget. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required Required G 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. Prepare a cash payments budget for selling and administrative expenses. Navembar December October Schedule of Cash Payments for S&A Expenses Salary expense Sales commissions Supplies expense (Utaties) Depreciation on store fixtures Rent Miscellaneous Total payments for S&A expenses $ 0 $ 0s Required information Campbell 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 $15,000 cash cushion. Prepare a cash budget. (Any repayments/shortage which should be indicated with a minus sign.) Show less Cash Budget October November December Section 1: Cash Receipts 0 0 Total Cash available Section 2: Cash Payments 0 0 Total budgeted disbursements Section 3: Financing Activities 0 0 0 $ 0 $ 0 0 $ cou 6 Next