Jimi, Inc., is preparing its master budget for the quarter ended December 31. It sells a single product for $55 cach. Seventy percent of all sales are on credit. Cash is paid for the remaining sales. All credit sales are collected in the month following the sale. The balance in accounts receivable is $12,000 on September 30, which represents the uncollected balance on September's sales. Budgeted sales for the next four months follow: Nov Dec Jan Sales Units 980 12008501190 Oct The unit cost is $30. The company prefers an ending inventory is 55% of the following month's sales. September's inventory is 480 units. Jimi, Inc. pay for 60% of the current month's purchases and 40% in the following month. The A/P balance on September 30 is $9,800, which represents unpaid purchases. Monthly operating expenses: Commissions (10% of sales) Shipping (4.2% of sales) Office salaries ($750 per week - assume each month has 4 weeks) Rent ($5,000 per month) Depreciation is $3,300 per month. Income taxes are 40% and will be paid on January 31. There are $2500 in taxes payable on December 31. The company requires $10,000 minimum monthly cash balance. The cash balance as of September 30 is $10,000. Loans are obtained at the end of any month when the minimum cash balance is not met. Interest is 3% per month based on the beginning of the month loan balance and is paid at the end of each month. If the monthly ending cash balance is over $10,000, loans are repaid at the end of the month. As of September 30, the loan balance is $900. Prepare a master budget (round all dollar amounts to the nearest whole dollar) for each of the months of October, November, and December include the: Need help with E,F,G only! A. Sales budget B. Cash receipts budget c. Inventory purchases budget D. Fable of cash payments for purchases of merchandise E. Miscellaneous expense budget F. Cash budget, including information on the loan balance G. Budgeted income statement Requirement (A) Sales Budget Particulars Units October November December Quarter 980 1,200 3,000 55555555 53,900 $ 66.000 .750 166,650 Sale price per Unit Total Sales $ Requirement (6) Cash Receipts Budget Particulars Cash Sales ( of current Month's Sales) October 16,170 November $ 19,800 December $ 14,025 Q uarter 49,995 $ 12,000 . $ - 37,730 $ $ Accounts Receivables October Sales (70% of Sales received in next month) November Sales (70% of Sales received in next month) Total Cash Collections $ $ $ $ $ $ $ 37,730 46,200 133.925 28,170 $ 46,200 60,225 52,530 $ Explanation : 70% of the sales are collected in next month. So, 20% of October Sales are received in November. Likewise 20% of December Sales are received in January October November December Quarter Requirement (C) Inventory Purchases Budget Particulars Budgeted Sales Add: Desired Ending Inventory Total Needs Less: Being Inventory Purchase Coster Total Purchases Cost 34 800 $ 30.225 $ November December Requirement (O Cash Payments for Purchase of Merchandise Particulars October Accounts Payable 9,800 October Purchases 20,880 November Purchases December Purchases Total 30,680 13.920 18 135 12.000 1666 0.756 Q uarter NDO 3400 0.225 18666 91.491 32.055 3