Please complete parts H, I and J. Parts A through G are completed and accurate, thank you.

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 ave a $30,000 salvage value and a three-year (36-month) useful life. 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 administrative expenses. 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. Answer is complete and correct. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Required 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. (Any repayments/shortage which should be indicated with a minus sign.) Required A Required B Required C Required D Required E Required F Required 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. October November December $ Sales Budget Cash sales Sales on account Total budgeted sales 99,000 121,000 220,000 $ 118,800 145,200 $ 264,000 $ 142,560 174,240 $ 316,800 $ Required A Required B Required A Required B Required C Required D Required E Required F Required G 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 $ 99,000 Schedule of Cash Receipts Current cash sales Plus collections from A/R Total collections 0 $ 118,800 121,000 $ 239,800 $ 142,560 145,200 $ 287,760 $ 99,000 Required A Required B Required C Required D Required E Required F Required G 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. October November December Inventory Purchases Budget Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases (on account) $ 132,000 15,840 147,840 $ 158,400 19,008 177,408 15,840 $ 161,568 $ 190,080 13,000 203,080 19,008 $ 184,072 0 $ 147,840 Required A Required B Required C Required D Required E Required F Required G Prepare a selling and administrative expenses budget. November December $ $ October Selling and Administrative Expense Budget Salary expense $ 19,000 Sales commissions 11,000 Supplies expense 4,400 Utilities 2,400 Depreciation on store fixtures 5,000 Rent 5,800 Miscellaneous 2,200 Total S&A expenses $ 49,800 19,000 13,200 5,280 2,400 5,000 5,800 2,200 52,880 19,000 15,840 6,336 2,400 5,000 5,800 2,200 56,576 >>> $ Required A Required B Required C Required D Required E Required F Required 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. (Any repayments/shortage which should be indicated with a minus sign.) Show less Cash Budget October November December $ $ 99,000 99,000 22,328 239,800 262,128 22,000 287,760 309,760 Section 1: Cash Receipts Beginning cash balance Add: Cash receipts Total Cash available Section 2: Cash Payments For inventory purchases For selling and administrative expenses Purchase of store fixtures Interest expense 118,272 31,400 210,000 158,822 45,680 179,572 48,936 0 0 2,830 2,502 359,672 207,332 231,010 Total budgeted disbursements Section 3: Financing Activities Surplus (shortage) Borrowing (repayment) Ending cash balance (260,672) 283,000 22,328 54,796 (32,796) 22,000 78,750 (56,750) 22,000 $ $ $ 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.) PEREZ COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31, year 1 Cash flows from operating activities $ 0 Net cash flows from operating activities Cash flows from investing activities Cash flow from financing activities $ 0