Prepare the following budgets for November and December: 1. Sales budget 2. Cost of goods sold, inventory, and purchases budget 3. Operating expense budget 4. Budgeted income statement 5. Cash collections budget 6. Cash payments budget 7. Combined cash budge

Data table . October sales are projected to be $340,000. Sales are projected to increase by 15% in November and another 20% in December and then return to the October level in January. 20% of sales are made in cash while the remaining 80% are paid by credit or debit cards. The credit card companies and banks (debit card issuers) charge a 5% transaction fee, and deposit the net amount (sales price less the transaction fee) in the store's bank account daily. The store does not accept checks. Because of the payment mechanisms, there is no risk of non-payment or bad-debts. The store's gross profit is 25% of its sales revenue. For the next several months, the store wants to maintain an ending merchandise inventory equal to $12,000 plus 10% of the next month's cost of goods sold. All purchases for merchandise are made on account and paid in the month following the purchase. The September 30 inventory is expected to be $37,500. Expected monthly operating expenses and details about payments include the following: Wages of store workers should be $7,100 per month and are paid on the last day of each month. Utilities expense is expected to be $700 per month in September, October, and November. Utilities expense is expected to be $1,200 per month during the colder months of December, January, and February. All utility bills are paid the month after incurred. . . . Nickel Saver Store is a local discount store with the following information: (Click the icon to view the information.) Read the requirements. Nickel Saver Store Cost of Goods Sold, Inventory, and Purchases Budget For the Months of November and December November December Cost of goods sold Plus: Desired ending inventory Total inventory required Less: Beginning inventory Purchases Nickel Saver Store Cash Payments for Operating Expenses Budget For the Months of November and December November December Wage expense Utilities expense Property tax expense Property and liability insuranse expense Depreciation expense Credit/Debit card fees expense Total operating expenses Requirement 4. Prepare the budgeted income statement for November and December. Requirement 4. Prepare the budgeted income statement for November and December. Review the budgets prepared in Requirements 1, 2, and 3. Nickel Saver Store Budgeted Income Statement For the Months of November and December November December Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses Net income Requirement 5. Prepare the cash collections budget for November and December. Review the sales budget prepared in Requirement 1. Nickel Saver Cash Collections Budget For the Months of November and December November December Cash sales Credit sales, net of fees Total cash collections Requirement 6. Prepare the cash payments budget for November and December. (If no cash payment is made, make sure to enter "0" in the appropriate cell.) Review the budgets prepared in Requirements 1, 2, and 3. Nickel Saver Cash Payments for Operating Expenses Budget For the Months of November and December November December Purchases of inventory, 30 day lag Cash payments for wages Cash payments for utilities Cash payments for property taxes Cash payments for dividends Property and liability insurance Total payments for operating expenses