Munoz Company is a retal company that specializes in selling outdoor camping equlpment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committoe to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks ALL I NEED IS E, F, AND G. a. October sales are estimated to be $340,000, of which 40 percent will be cash and 60 percent will be credt. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales b. The company expects to collect 100 percent of the accounts recelvable generated by credit sales in C. The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending December is expected to be $12,900. Assume that all purchases are made on account. Prepare an d. The company pays 70 percent of accounts payable in the month of purchase and the remaining30 in the following month. Prepare a cash payments budget for inventory purchases budget the month following the sale. Prepare a schedule of cash receipts inventory equal to 20 percent of the next month's cost of goods sold. However, ending inventory of inventory purchases budget e. Budgeted selling and administrative expenses per month follow Salary expense (tixed) Sales connissions Supplies expense Utilitics (ixed) Depreciation on store tixtures (fixed)* Rent (ixed Miscellaneous tfixedi S 18, 900 4t of sales 2 t of sales 3 2,300 4,900 5,100 $ 2,100 The capital expendtures budget indicates that Munoz will spend $146,600 on October 1 for store fxtures, which are expected to have a $29,000 salvage value and a two-year (24-month) useful ife. Use this information to prepare a selling and administrative expenses budget 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 f. g 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 $22,000 cash cushion. Prepare a cash budget. E. Prepare a selling and administrative expenses budget. October Selling and Administrative Expense Budget Supplies exponse st