Please explain the answers.

Question 3 10 / 10 points Employee wage costs per month are made up of 2 parts: a salary of $5,000 plus sales commissions equal to 10% of the current month's sales. This is a mixed cost with both a fixed ($5,000) and a variable portion. The company pays half this amount in the current month and half early the following month. Other monthly expenses: Rent expenses - fixed cost $9,000 (paid on first of month) $2,250 $600 Amortization, including computer - fixed costs Insurance expense - fixed costs (from prepaid insurance) Miscellaneous expenses - variable costs sales 9% of Miscellaneous expenses are paid 70% in the current month and 30% in the following month. Remember to enter numeric amounts without a $ or, (a comma) If the answer is $20,000.00, then enter the number as 20000 Remember to round to 2 decimal places. For numbers such as 1.456, round up to 1.46 and for numbers such as 1.452, round down to 1.45 Required: Complete the Operating Expenses Budget and fill in the following numbers. Remember - this is accrual accounting based! Total operating expenses for January are $ 157450 Total operating expenses for February are $ 163150 Using the information from the previous parts of this question, complete the Budgeted Income Statement (accrual based!) for the 2 months ending February HINT: the income statement should be a total income statement for the 2 months together. DO NOT create monthly income statements. NOTE: ignore income taxes. Remember to enter numeric amounts without a $ or , (a comma) If the answer is $20,000.00, then enter the number as 20000 Remember to round to 2 decimal places. For numbers such as 1.456, round up to 1.46 and for numbers such as 1.452, round down to 1.45 Required: Total sales revenue is $ 1510000 Cost of goods sold is $ 981500 Gross Profit is $ 528500 Question 5 10/10 points Assume that Grippers' sales are 25% cash and 75% credit. Grippers' collection history indicates that credit sales are collected as follows: 30% in the month of sale 60% in the month after the sale 10% two months after the sale November sales IN TOTAL are $391.500, and December sales were $398,250. HINT: consider that the information given for November and December are sales IN TOTAL (100%). Prepare a schedule for the budgeted cash collections for January and February Remember to enter numeric amounts without a Sor (a comma) If the answer is $20,000.00, then enter the number as 20000 Remember to round to 2 decimal places. For numbers such as 1.456, round up to 1.46 and for numbers such as 1.452, round down to 1.45 Required: Total collections in January are $ 560075 Total collections in February are $ 728619 Question 6 8/8 points Grippers pays for inventory as follows: 60% in the month of purchase and the remaining 40% in the following month. HINT: you may need the information from December sales for this question. Complete the Budgeted Cash Payment for Purchases schedule and determine total payment for purchases for January and February Remember to enter numeric amounts without a Sor . (a comma) If the answer is $20,000.00, then enter the number as 20000 Remember to round to 2 decimal places. For numbers such as 1.456, round up to 1.46 and for numbers such as 1452, round down to 1.45 Required: Total payments for purchases for January are $ 442423 Total payment for purchases for February are $ 547690 Question 7 8/8 points Using the information from the Operating Expense Budget (Question 4). prepare the Budgeted Cash Payment for Operating Expenses schedule. Remember to enter numeric amounts without a Sor.(a comma) If the answer is $20,000.00, then enter the number as 20000 Remember to round to the nearest dollar and no decimal places Required: Total payment for operating expenses for January are 128285 Total payment for operating expenses for February are S 157990 Question 3 10 / 10 points Employee wage costs per month are made up of 2 parts: a salary of $5,000 plus sales commissions equal to 10% of the current month's sales. This is a mixed cost with both a fixed ($5,000) and a variable portion. The company pays half this amount in the current month and half early the following month. Other monthly expenses: Rent expenses - fixed cost $9,000 (paid on first of month) $2,250 $600 Amortization, including computer - fixed costs Insurance expense - fixed costs (from prepaid insurance) Miscellaneous expenses - variable costs sales 9% of Miscellaneous expenses are paid 70% in the current month and 30% in the following month. Remember to enter numeric amounts without a $ or, (a comma) If the answer is $20,000.00, then enter the number as 20000 Remember to round to 2 decimal places. For numbers such as 1.456, round up to 1.46 and for numbers such as 1.452, round down to 1.45 Required: Complete the Operating Expenses Budget and fill in the following numbers. Remember - this is accrual accounting based! Total operating expenses for January are $ 157450 Total operating expenses for February are $ 163150 Using the information from the previous parts of this question, complete the Budgeted Income Statement (accrual based!) for the 2 months ending February HINT: the income statement should be a total income statement for the 2 months together. DO NOT create monthly income statements. NOTE: ignore income taxes. Remember to enter numeric amounts without a $ or , (a comma) If the answer is $20,000.00, then enter the number as 20000 Remember to round to 2 decimal places. For numbers such as 1.456, round up to 1.46 and for numbers such as 1.452, round down to 1.45 Required: Total sales revenue is $ 1510000 Cost of goods sold is $ 981500 Gross Profit is $ 528500 Question 5 10/10 points Assume that Grippers' sales are 25% cash and 75% credit. Grippers' collection history indicates that credit sales are collected as follows: 30% in the month of sale 60% in the month after the sale 10% two months after the sale November sales IN TOTAL are $391.500, and December sales were $398,250. HINT: consider that the information given for November and December are sales IN TOTAL (100%). Prepare a schedule for the budgeted cash collections for January and February Remember to enter numeric amounts without a Sor (a comma) If the answer is $20,000.00, then enter the number as 20000 Remember to round to 2 decimal places. For numbers such as 1.456, round up to 1.46 and for numbers such as 1.452, round down to 1.45 Required: Total collections in January are $ 560075 Total collections in February are $ 728619 Question 6 8/8 points Grippers pays for inventory as follows: 60% in the month of purchase and the remaining 40% in the following month. HINT: you may need the information from December sales for this question. Complete the Budgeted Cash Payment for Purchases schedule and determine total payment for purchases for January and February Remember to enter numeric amounts without a Sor . (a comma) If the answer is $20,000.00, then enter the number as 20000 Remember to round to 2 decimal places. For numbers such as 1.456, round up to 1.46 and for numbers such as 1452, round down to 1.45 Required: Total payments for purchases for January are $ 442423 Total payment for purchases for February are $ 547690 Question 7 8/8 points Using the information from the Operating Expense Budget (Question 4). prepare the Budgeted Cash Payment for Operating Expenses schedule. Remember to enter numeric amounts without a Sor.(a comma) If the answer is $20,000.00, then enter the number as 20000 Remember to round to the nearest dollar and no decimal places Required: Total payment for operating expenses for January are 128285 Total payment for operating expenses for February are S 157990