Please help me complete parts C, D, and G! I have the rest of the parts filled out correctly. Cannot figure out the rest
Fabulous is a retail company that sells specialized gardening products. The company is considering opening a new store on October 1, Year1. As budget coordinator, you have been asked to prepare a master budget for the first 3 months of the company's operation. You have gathered the following information: October sales are estimated to be $500000 of which 45 percent will be cash and the remainder will be on credit. The company expects all sales to increase at the rate of 10 percent per month for November and December. Sales in January Year 2 are expected to be $400000 The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale Prepare a sales budget and a schedule of cash receipts using these facts and your excel template. Check your answers here before moving to the next part, by completing the cells requested in the chart below a. Sales Budget Cash sales Sales on account Total budgeted sales October November December Total-Qtr b. Schedule of Cash Receipts Current cash sales Plus collections from A/R Total collections October November December Total-Qtr The cost of goods sold is 80 percent of sales. The company desires to maintain a minimum ending inventory equal to 30 percent of the next month's cost of goods sold. (Ending inventory for r is based on budgeted January Year2 sales.) Assume that all inventory purchases are made on account (on credit). The company pays 40 percent of accounts payable in the month of purchase and the remaining amount in the following month In excel, prepare an inventory purchases budget and a cash payments budget for inventory purchases. Use the check figures below before you continue. November DecemberT Inventory Purchases Budget udgeted cost of goods sold October Total-Qtr desired ending inventory nventory needed ess beginning inventony equired purchases (on account) d. Cash payments for inventory Payment of current month's A/P Payment for prior month's AIP Total budgeted payments October November December Total-Qtr Budgeted selling and administrative expenses per month follow Salary expense (fixed): S38400 Sales commissions: 5 percent of Sales Supplies expense: 2 percent of Sales . . . Utilities (fixed): $3200 . Depreciation on store equipment (fixed): You compute Rent (fixed) S 12000 Miscellaneous (fixed): S 2000 The capital expenditures budget indicates that the company will spend $900000 on October 1 for store fixtures, which are expected to have a $24000 residual value and a 96 month useful life 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. In excel, prepare the selling and administrative expenses budget and the cash payments budget for selling and administrative expenses. Check the key figures below. Selling and Admin.Expense Budget Salary expense Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total S&A expenses October November December Total-Qtr f. Cash payments for S&A Salary expense Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total payments for S&A expenses October November December Total-Qtr Fabulous issued common stock for $600000 on October 5. A dividend of $2600 was paid on December 15. The company borrows and repays funds in increments of $1,000 on the last day of the month. 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 $40000 cash cushion. Prepare a cash budget on your excel template. Check key figure below. g. Cash Budget Beginning cash balance November December October Total-Qtr Issuance of stock Cash available Less payments For S&A expenses Purchase of store fixtures Pay dividend Interest expense Total budgeted payments Cash balance before borrow/repay Financing activity Borrowing (repayment) Ending cash balance
