Munoz Company is a retail company that soeciallizes in selling outdoor 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.

Seved 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 Required H Required! Required Munoz 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 $21,000 cash cushion. Prepare a cash budget. (Any repayments should be indicated with a minus sign.) Show less Cash Budget October November December Section 1: Cash Receipts Beginning cash balance Add: Cash receipts Total cash available Section 2: Cash Payments For Inventory purchases 0 0 0 0 0 Total budgeted disbursements Section 3: Financing Activities 0 0 0 $ 0 s 0 $ 0 Complete this question by entering your answers in the tabs below. Required 1 Required) Required A Required B Required C Required D Required E Required F Required Grequired H Prepare a pro forma income statement for the quarter. MUNOZ COMPANY Pro Forma Income Statement For the Quarter Ended December 31, Year 1 0 0 $ 0 Required A Required B Required C Required D Required E Required F Required G Required H Required 1 Required) Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.) MUNOZ COMPANY Pro Forma Balance Sheet December 31, Year 1 Assets 0 Total assets $ 0 Liabilities Equity Total liabilities and equity $ 0 Required A Required B Required C Required D Required E Required F Required G Required H Required 1 Required Prepare a pro forma statement of cash flows for the quarter. (Cash outflows should be indicated with a minus sign.) MUNOZ COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31, Year 1 Cash flows from operating activities $ 0 11 Net cash flows from operating activities Cash flows from investing activities Cash flow from financing activities $ 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 Required H Required 1 Required) 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 $ 136,000 $ Schedule of Cash Receipts Current cash sales Plus collections from AR Total collections 163,200 $ 204,000 367,200 $ 195,840 244,800 440,640 $ 136,000 $ Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Required G Required H Required I Required 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 $12,900. Assume that all purchases are made on account. Prepare an inventory purchases budget. October November December Inventory Purchases Budget Sales 340,000 $ 408,000 $ 489,600 Plus: Desired ending inventory 238,000 285,600 342.720 Inventory needed 578,000 693,600 832,320 Less: Beginning inventory 47,600 57,120 68,544 Required purchases (on account) $ 530,400 $ 636,480 $ 763,776 Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Required G Required H Required! 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.) October November December Schedule of Cash Payments Budget for Inventory Purchases Payment of current month's accounts payable $ 173,264 $ 207,917 s 200,953 Payment for prior month's accounts payable 74,256 89,107 Total budgeted payments for inventory $ 173,264 $ 282,173 $ 290,060 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 Required H Required I Required) Prepare a selling and administrative expenses budget October November December Selling and Administrative Expense Budget Salary expense $ 18,900 $ 18,900 $ 18,900 Sales commissions 13,600 16,320 19,584 Supplies expense 6,800 8,160 9,792 Utilities 2,300 2,300 2,300 Depreciation on store fixtures 4,900 4,900 4,900 Rent 5,700 5,700 5,700 Miscellaneous 2,100 2,100 2,100 Total S&A expenses $ 54,300 $ 58,380 $ 63,276 Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required Required f Required G Required H Required I Required) 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. October November December Schedule of Cash Payments for S&A Expenses Salary expense $ 18,900 $ 18,900 $ 18,900 Sales commissions 13,600 16,320 Supplies expense 6,800 8,160 9,792 Utilities 2,300 2,300 Depreciation on store fixtures Rent 5.700 5,700 5,700 Miscellaneous 2,100 2,100 2,100 Total payments for S&A expenses $ 33,500 $ 50,760 $ 55,112