I don't know how to do parts H, I, & J.

I'm not sure how to do part G.

Required information Required a. October sales are estimated to be $140,000, 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 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 $12,200. 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 commissions Supplies expense Utilities (fixed) Depreciation on store fixtures Rent (fixed) Miscellaneous (fixed) $10.200 5 of Sales 2. of Sales $1,600 $ 4.200 $5,000 $ 1.400 (fixed). *The capital expenditures budget indicates that Benson will spend $173,200 on October 1 for store fixtures, which are expected to have a $22,000 salvage value and a three-year (36-month) useful life. Use this information to prepare a selling and administrative expenses budget. 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. 9. Benson 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 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $14,000 cash cushion. Prepare a cash budget Problem 14-23 Part 2 h. Prepare a pro forma income statement for the quarter. 1. 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 H Required I Required) Prepare a pro forma income statement for the quarter. BENSON COMPANY Pro Forma Income Statement For the Quarter Ended December 31, 2019 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Operating income Interest expense Net income Required I > Required information Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.) BENSON COMPANY Pro Forma Balance Sheet December 31, 2019 Assets + Cash Accounts receivable Inventory Store fixtures Less: Accumulated depreciation I $ Total assets Liabilities Accounts payable Sales commissions payable Utilities payable Line of credit liability Equity Retained earnings Total liabilities and equity Required information Prepare a pro forma statement of cash flows for the quarter. (Amounts to be deducted should be indicated by a minus sign.) BENSON COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31, 2019 Cash flows from operating activities Cash receipts from customers Cash payments for inventory Cash payments for selling and administrative expenses Cash payments for interest expense Net cash flows from operating activities Cash flows from investing activities Cash payment for store foxtures Cash flow from financing activities Net inflow from line of credit Net increase in cash Plus: Beginning cash balance Ending cash balance ( Required i VERRI VE Required information 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. Benson 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 1 percent per month in cash the last day of the month. To be prudent, the company desires to maintain a $14,000 cash cushion. Prepare a cash budget. 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 October sales are estimated to be $140,000, 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. October November December $ $ Sales Budget Cash sales Sales on account Total budgeted sales 49,000 91.000 140,000 58,800 $ 100.2007 168,000 $ 70,560 131,040 201,600 $ $ Required 3 > 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 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 A/R Total collections 49,000 op 49,000 58,800 91,000 149,800 70,560 109,200 179,760 $ $ $ 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 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 $12,200. Assume that all purchases are made on account. Prepare an inventory purchases budget. October November December $ $ 120,960 12.200 Inventory Purchases Budget Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases (on account) 84,000 $ 10,080 94,080 op 94,080 $ 100,800 12,096 112,896 10,0801 102,816 133,160 12,096 121.064 $ Complete this question by entering your answers in the tabs below. Required A Required B Required equired D Required E Required F Required G The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the month. Prepare a cash payments budget for inventory purchases. (Round your final answers to the nearest whole amounts.) November December October Schedule of Cash Payments Budget for Inventory Purchases Payment of current month's accounts payable ($ 56,448 Payment for prior month's accounts payable [ 0 Total budgeted payments for inventory $ 56,448 $ $ 61,690 37,632 99,322 72,638 41,126 113,764 S $ 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 Prepare a selling and administrative expenses budget. November December $ $ October Selling and Administrative Expense Budget Salary expense $ 18,200 Sales commissions 7,000 Supplies expense 2,800 Utilities 1,600 Depreciation on store fixtures 4,200 Rent 5,000 Miscellaneous 1,400 Total S&A expenses $ 40,200 18,200 8,400 3,360 1,600 ,200 5,000 1,400 42,160 18,200 10,080 4,032 1,600 4,200 5,000 1,400 44,512 4 $ $ 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 Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the mon they are incurred. Prepare a cash payments budget for selling and administrative expenses. December $ 18,200 8,400 4,032 October November Schedule of Cash Payments for S&A Expenses Salary expense $ 18,200 $ 18,200 Sales commissions of 7,000 Supplies expense 2,800 3,360 Utilities of 1,600 Depreciation on store fixtures o of Rent 5000 5,000 Miscellaneous 1,400 1,400 Total payments for S&A expenses $ 27,400 $ 36,560 1,600 5,000 1,400 38,632 $ Required E Required > IN Required information Required A Required B Required C Required D Required E Required F Required G Benson 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 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $14,000 cash cushion. Prepare a cash budget. (Any repayments/shortage which should be indicated with a minus sign.) Show less Cash Budget October November December S 0 49,000 49, 0000 Section 1: Cash Receipts Beginning cash balance Add: Cash receipts Total cash available Section 2: Cash Payments For inventory purchases For selling and administrative expenses Purchase of store foxtures Interest expense 56,448 27,400 99,322| 36,560 113,764 38.632 83,848 135,882 152,396 Total budgeted disbursements Section 3: Financing Activities Surplus (shortage) Borrowing repayment) Ending cash balance (34,848) (135,882) (152,396) $ (34.848) $ (135,882) $ (152,396)