October sales are estimated to be $450,000, 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. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a sales budget and a schedule of cash receipts.

Required

a. & b.

October sales are estimated to be $450,000, 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. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a sales budget and a schedule of cash receipts.

c. & d.

The cost of goods sold is 65 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next months cost of goods sold. However, ending inventory of December is expected to be $12,000. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the following month. Assume that all purchases are made on account. Prepare an inventory purchases budget and a cash payments budget for inventory purchases. (Round your answers to the nearest whole dollar amount.)

e. & f.	Budgeted selling and administrative expenses per month follow.

Salary expense (fixed)	$	19,500
Sales commissions		4	percent of Sales
Supplies expense		3	percent of Sales
Utilities (fixed)	$	1,300
Depreciation on store fixtures (fixed)*	$	6,000
Rent (fixed)	$	5,900
Miscellaneous (fixed)	$	1,300

*	The capital expenditures budget indicates that Haas will spend $170,000 on October 1 for store fixtures, which are expected to have a $26,000 salvage value and a two-year (24-month) useful life.

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 selling and administrative expenses budget and a cash payments budget for selling and administrative expenses. (Round your answers to nearest whole dollar amount.)

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 selling and administrative expenses budget and a cash payments budget for selling and administrative expenses. (Round your answers to nearest whole dollar amount.)

g.	Haas 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 $16,000 cash cushion. Prepare a cash budget. (Any repayments/shortage which should be indicated with a minus sign. Round your answers to nearest whole dollar amount.)
	CASH BUGEd October October November December Beginning cash balance o Plus: Cash receipts 157,500 481,500 577,800 Cash available 157,500 481,500 577,800 Less: Payments For inventory purchases 235,755 364,221 354,588 For selling &administrative expenses 0 62,200 69,400 Purchase of store fixtures 170,0000 0 Inerest expenses 0 3,050 2,554 Total Budgeted payment 455,955 429,471 426,152 Suplus (shortage) (288,455) 52,029 151,648 Financing activity Borrowing repayment ?
h.	Prepare a pro forma income statement for the quarter. (Round your answers to nearest whole dollar amount.)

i.	Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.)

j.	Prepare a pro forma statement of cash flows for the quarter. (Amounts to be deducted should be indicated by a minus sign. Round your answers to nearest whole dollar amount.)