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JUST NEED PART G

Help Save & Exit Submit Check my work prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks: Problem 14-23 Part 1 Required references a. October sales are estimated to be $310,000, 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 70 percent of sales. The company desires to maintain a minimum ending Inventory equal to 20 percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $13,300. Assume that all purchases are made on account. Prepare an inventory purchases budget d. The company pays 80 percent of accounts payable in the month of purchase and the remaining 20 percent in the following month Prepare a cash payments budget for inventory purchases e. Budgeted selling and administrative expenses per month follow Salary expense (fixed) $19,300 Calo Check my work Required information e. Budgeted selling and administrative expenses per month follow points eBook $19, 3e 45 Sales 25 of Sales Salary expense (fixed) Sales Comissions Supplies expense Utilities (fixed) Depreciation on store Fixtures (fixed) Rent (fixed) Miscellaneous (fixed) $ 2,70 $ 5, see $ 6.10 $ 2.500 "The capital expenditures budget indicates that Solomon will spend $160,200 on October 1 for store fixtures, which are expected to have a $33.000 salvage value and a two-year (24-month useful life Use this information to prepare a selling and administrative expenses budget. 1. 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. Solomon borrows funds, in increments of $1000, 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 pay interest of 2 percent per month in cash on the last day of the month To be prudent the company desires to maintain a $25.000 cash cushion Prepare a cash budget Return to question Required information 139500 139.500 337.900 67 838 405,480 1 40.407 Add: Cash receipts Total cash available Section 2: Cash Payments For inventory purchases For selling and administrative expenses Purchase of store fixtures Interest expense 270,469 50,440 264.790 54,408 215 264 34,100 160 200 00 0 409,564 0 % 0 % 320,909 319,198 Total budgeted disbursements Section 3: Financing Activities Surplus (shortage) Borrowing (repayment) Ending cash balance (270,084) 03 270,064) 253,073) (12,000) $ (265,073) (178,791) (80,609) 8 S (250-400) $ Prev 1 of 1 Next