Please answer question in a downloadable excel spreadsheet form. Preferably using the spreadsheet that has been attached.

BUS 622 Chapter 12 Case Haas Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2015. 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. Required Round all computations to two decimal points. a. October sales are estimated to be $250,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 8 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 $12,000. Assume that all purchases are made on account. Prepare an inventory purchases budget. d. 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. e. Budgeted selling and administrative expenses per month follow. 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. 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 $12,000 cash cushion. Prepare a cash budget. h. Prepare a pro forma income statement for the quarter. i. Prepare a pro forma balance sheet at the end of the quarter. j. Prepare a pro forma statement of cash flows for the quarter. Student Name: Class: Problem 07-23A HAAS COMPANY a. Sales Budget Cash sales Sales on account Total budgeted sales October November December Pro Forma b. Schedule of Cash Receipts Current cash sales Plus collections from A/R Total collections October November December Pro Forma November December Pro Forma Data October November December Pro Forma Data October November December Pro Forma Data c. Inventory Purchases Budget October Budgeted cost of goods sold Plus desired ending inventory Inventory needed Less beginning inventory Required purchases (on account) d. Schedule of Cash Payments Budget for Inventory Purchases Payment of current month's A/P Payment for prior month's A/P Total budgeted payments e. Selling and Administrative Expense Budget Salary expense Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total S&A expenses Student Name: Class: Problem 07-23A f. Schedule of Cash Payments for S&A Expenses October November December Pro Forma Data December Pro Forma Data Salary expense Prior month sales commissions Supplies expense Prior month utilities Depreciation on store fixtures Rent Miscellaneous Total payments for S&A expenses g. Cash Budget October Beginning cash balance Add cash receipts Cash available Less payments For inventory purchases For S&A expenses Purchase of store fixtures Interest expense Total budgeted payments Payment minus receipts Surplus (shortage) Financing activity Borrowing (repayment) Ending cash balance h. HAAS COMPANY Pro Forma Income Statement For the Quarter Ended December 31, 2015 Sales revenue Cost of goods sold Gross margin S&A expenses Operating income Interest expense Net income November Student Name: Class: Problem 07-23A i. HAAS COMPANY Pro Forma Balance Sheet December 31, 2015 Assets Cash Accounts receivable Inventory Store fixtures Accumulated depreciation Book value of fixtures Total assets Liabilities Accounts payable Utilities payable Sales commissions payable Line of credit liability Equity Retained earnings Total liabilities and equity j. HAAS COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31, 2015 Cash flows from operating activities Cash receipts from customers Cash payments for inventory Cash payments for S&A expenses Cash payments for interest expense Net cash flows from operating activities Cash flows from investing activities Cash payment for store fixtures Cash flows from financing activities Net inflow from line of credit Net increase in cash Plus: Beginning cash balance Ending cash balance Given Data P07-23A: HAAS COMPANY Part a. October sales Sales in cash Sales in accounts receivable Expected sales growth per month Part b. Accounts receivable collected in month following sales Part c. Cost of goods sold as percentage of sales Ending inventory - percent of next month's cost of goods sold December estimated ending inventory Part d. Accounts payable paid in month of purchase Accounts payable paid in month following purchase Part e. Salary expense (fixed) Sales commissions (percent of sales) Supplies expense (percent of sales) Utilities (fixed) Depreciation on store equipment (fixed) Rent (fixed) Miscellaneous (fixed) Cost of store fixtures Salvage value - store fixtures Useful life (years) - store fixtures Part g. Borrowing increments Monthly interest rate Cash cushion $ 250,000 40% 60% 8% 100% 60% $ 10% 12,000 70% 30% $ $ 18,000 5% 2% 1,400 4,000 4,800 1,200 164,000 20,000 3 $ $ 1,000 1% 12,000 Buget type Sales buget Schedule of cash receipts Sr. No Particulars October November December 1 Sales 250000 270000 291600 2 Cash 40% 100000 108000 116640 3 Credit 60% 150000 162000 174960 150000 162000 150000 162000 174960 16200 17496 12000 0 16200 17496 8 Purchase (5+6-7) 166200 163296 169464 Payment 70% of 9 purchase in same month 116340 114307.2 118624.8 49860 48988.8 4 Collection from credit sales 5 COGS (60% of sales) Ending inventory 6 (10% of next months COGS) 7 Opening inventory Cash payment buget Payment 30% of 10 purchase in next month Selling and admin exp buget 11 Salary expenses 18000 18000 18000 12 Sales comission 5% of sales 12500 13500 14580 13 Supply exp 2% of sales 5000 5400 5832 14 Utility 1400 1400 1400 15 Depreciation 4000 4000 4000 admin exp buget 16 Rent 4800 4800 4800 17 Misscelenious 1200 1200 1200 18000 18000 18000 12500 13500 5400 5832 18 Salary expenses Cash payment of selling and admin exp 19 Sales comission 5% of sales 20 Supply exp 2% of sales 5000 21 Utility 1400 1400 22 Rent 4800 4800 4800 23 Misscelenious 1200 1200 1200 -209340 50532.8 66294.4 0 12660 12972 12000 12000 12000 2220 1740 -221340 48972.8 65526.4 222000 -48000 -65000 53100 57480 65088 24 Store fixture 164000 FA cash buget 25 Salvage value 2+4-910-1819-2021-222324+25 Cash flow statement Net cash flows Opening balance Closing balance 18 Interest payment Shortage/excess Bank loan Income statement 1-5-1112-13Net income 14-1516-17-18 Assets Balancesheet Cash 12527 Stock 12000 Furniture fixures (164000-12000) 152000 Receivables 174960 Total 351487 Balancesheet Liabilitie Sales comission s Utility 14580 1400 Bank loan 109000 Net income 175668 Payables Total 50839 351487