PLEASE FILL IN THE BLANKS OR AS MUCH AS YOU CAN!

The following trial balance was drawn from the records of Thornton Company as of October 1, year 2.

Cash	$	24,000
Accounts receivable		76,000
Inventory		48,000
Store equipment		360,000
Accumulated depreciation					$	80,000
Accounts payable						80,000
Line of credit loan						260,000
Common stock						66,000
Retained earnings						22,000
Totals	$	508,000			$	508,000

Required

a-1. Based on the following information, prepare a sales budget and a schedule of cash receipts for October, November, and December. Sales for October are expected to be $290,000, consisting of $56,000 in cash and $234,000 on credit. The company expects sales to increase at the rate of 15 percent per month. All accounts receivable are collected in the month following the sale.

a-2. Based on the following information, prepare a purchases budget and a schedule of cash payments for inventory purchases for October, November, and December. The inventory balance as of October 1 was $48,000. Cost of goods sold for October is expected to be $80,000. Cost of goods sold is expected to increase by 15 percent per month. The company expects to maintain a minimum ending inventory equal to 25 percent of the current month cost of goods sold. Eighty percent of accounts payable is paid in the month that the purchase occurs; the remaining 20 percent is paid in the following month.

a-3. Based on the following selling and administrative expenses budgeted for October, prepare a selling and administrative expenses budget for October, November, and December.

Sales commissions (10% increase per month)	$	8,500
Supplies expense (10% increase per month)		1,700
Utilities (fixed)		3,800
Depreciation on store equipment (fixed)		1,900
Salary expense (fixed)		42,000
Rent (fixed)		7,600
Miscellaneous (fixed)		1,500

Cash payments for sales commissions and utilities are made in the month following the one in which the expense is incurred. Supplies and other operating expenses are paid in cash in the month in which they are incurred.

b. Supply the missing information in the following pro forma income statement and balance sheet for the fourth quarter of year 2. The statements are prepared as of December 31, year 2.

c. Indicate whether Thornton will need to borrow money during October by preparing October's Cash Budget.

Supply the missing information in the following pro forma balance sheet for the fourth quarter of year 2. The statement is prepared as of December 31, year 2. (Amounts to be deducted should be indicated by a minus sign. Round your answers to the nearest whole dollar.)

Based on the following information, prepare a sales budget and a schedule of cash receipts for October, November, and December. Sales for October are expected to be $290,000, consisting of $56,000 in cash and $234,000 on credit. The company expects sales to increase at the rate of 15 percent per month. All accounts receivable are collected in the month following the sale. Based on the following information, prepare a purchases budget and a schedule of cash payments for inventory purchases for October, November, and December. The inventory balance as of October 1 was $48,000. Cost of goods sold for October is expected to be $80,000. Cost of goods sold is expected to increase by 15 percent per month. The company expects to maintain a minimum ending inventory equal to 25 percent of the current month cost of goods sold. Eighty percent of accounts payable is paid in the month that the purchase occurs; the remaining 20 percent is paid in the following month. (Round your answers to the nearest whole dollar.) Based on the following selling and administrative expenses budgeted for October, prepare a selling and administrative expenses budget for October, November, and December. Supply the missing information in the following pro forma income statement for the fourth quarter of year 2 . The statement is prepared as of December 31, year 2. (Amounts to be deducted should be indicated by a minus sign. Round your answers to the nearest whole dollar.) Indicate whether Thornton will need to borrow money during October by preparing October's Cash Budget. (Negative amounts should be indicated by a minus sign. Round your answers to the nearest whole dollar.) Based on the following information, prepare a sales budget and a schedule of cash receipts for October, November, and December. Sales for October are expected to be $290,000, consisting of $56,000 in cash and $234,000 on credit. The company expects sales to increase at the rate of 15 percent per month. All accounts receivable are collected in the month following the sale. Based on the following information, prepare a purchases budget and a schedule of cash payments for inventory purchases for October, November, and December. The inventory balance as of October 1 was $48,000. Cost of goods sold for October is expected to be $80,000. Cost of goods sold is expected to increase by 15 percent per month. The company expects to maintain a minimum ending inventory equal to 25 percent of the current month cost of goods sold. Eighty percent of accounts payable is paid in the month that the purchase occurs; the remaining 20 percent is paid in the following month. (Round your answers to the nearest whole dollar.) Based on the following selling and administrative expenses budgeted for October, prepare a selling and administrative expenses budget for October, November, and December. Supply the missing information in the following pro forma income statement for the fourth quarter of year 2 . The statement is prepared as of December 31, year 2. (Amounts to be deducted should be indicated by a minus sign. Round your answers to the nearest whole dollar.) Indicate whether Thornton will need to borrow money during October by preparing October's Cash Budget. (Negative amounts should be indicated by a minus sign. Round your answers to the nearest whole dollar.)