Please complete parts H, I and J. I have included the correct answers that I have, as well as the incorrect. I have attached parts A through G for your reference. Thank you.

Required information Problem 7-23A (Algo) Preparing a master budget for retail company with no beginning account balances LO 7-2,7-3, 7-4, 7-5, 7-6 [The following information applies to the questions displayed below.) Perez Company is a retail company that specializes in selling outdoor camping 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. Problem 7-23A (Algo) Part 1 Required a. October sales are estimated to be $220,000, of which 45 percent will be cash and 55 percent will be credit. The company expects sales to increase at the rate of 20 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 $13,000. Assume that all purchases are made on account. Prepare an inventory purchases budget. d. The company pays 80 percent of accounts payable in the monti purchase remaining percent in following month. Prepare a cash payments budget for inventory purchases. e. Budgeted selling and administrative expenses per month follow. Salary expense (fixed) Sales commissions Supplies expense Utilities (fixed) Depreciation on store fixtures (fixed)* Rent (fixed) Miscellaneous (fixed) $19,000 5% of Sales 2% of Sales $ 2,400 $ 5,000 $ 5,800 $ 2,200 *The capital expenditures budget indicates that Perez will spend $210,000 on October 1 for store fixtures, which are expected to have a $30,000 salvage value and a three-year (36-month) useful life. 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. Perez 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 $22,000 cash cushion. Prepare a cash budget. ! Required information Problem 7-23A (Algo) Preparing a master budget for retail company with no beginning account balances LO 7-2,7-3, 7-4, 7-5, 7-6 [The following information applies to the questions displayed below.] Perez Company is a retail company that specializes in selling outdoor camping 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. Problem 7-23A (Algo) Part 2 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required H. Required I Required) Prepare a pro forma income statement for the quarter. PEREZ COMPANY Pro Forma Income Statement For the Quarter Ended December 31, year 1 Sales revenue $ 800,800 Cost of goods sold 480,480 Gross margin 320,320 Selling and administrative expenses 159,256 Operating income 161,064 Interest expense 8,385 Net income $ 152,679 Required H Required I Required) Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.) $ 22,000 174,240 13,000 PEREZ COMPANY Pro Forma Balance Sheet December 31, year 1 Assets Cash Accounts receivable Inventory Store fixtures $ 210,000 Accumulated depreciation 15,000 Book value of fixtures Total assets Liabilities Accounts payable Utilities payable Sales commissions payable Line of credit liability 225,000 434,240 $ $ 36,814 2,400 15,840 501,835 X Equity Retained earnings 152,679 Total liabilities and equity $ 709,568 Required H Required I Required) Prepare a pro forma statement of cash flows for the quarter. (Amounts to be deducted should be indicated by a minus sign.) 626,560 (456,666) (126,016) (8,385) PEREZ COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31, year 1 Cash flows from operating activities Cash receipts from customers $ Cash payments for inventory Cash payments for selling and administrative expenses Cash payments for interest expense Net cash flows from operating activities Cash flows from investing activities Cash payment for store fixtures Cash flow from financing activities Net inflow from line of credit Net increase in cash Plus: Beginning cash balance Ending cash balance $ 35,493 (210,000) 501,835 327,328 0 327,328 Required H Required I Required) Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.) $ 22,000 174,240 13,000 PEREZ COMPANY Pro Forma Balance Sheet December 31, year 1 Assets Cash Accounts receivable Inventory Store fixtures $ 210,000 Accumulated depreciation 15,000 Book value of fixtures Total assets Liabilities Accounts payable Utilities payable Sales commissions payable Line of credit liability 225,000 434,240 $ $ 36,814 2,400 15,840 501,835 X Equity Retained earnings 152,679 Total liabilities and equity $ 709,568 Required H Required I Required) Prepare a pro forma statement of cash flows for the quarter. (Amounts to be deducted should be indicated by a minus sign.) 626,560 (456,666) (126,016) (8,385) PEREZ COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31, year 1 Cash flows from operating activities Cash receipts from customers $ Cash payments for inventory Cash payments for selling and administrative expenses Cash payments for interest expense Net cash flows from operating activities Cash flows from investing activities Cash payment for store fixtures Cash flow from financing activities Net inflow from line of credit Net increase in cash Plus: Beginning cash balance Ending cash balance $ 35,493 (210,000) 501,835 327,328 0 327,328