Problem 14-23 Preparing a master budget for retail company with no beginning account balances LO 14-2, 14-3, 14-4, 14-5, 14-6 The folowing information appies to the questions displayed below Adams Company is a retail company that specializes in seling outdoor camping equipment. The company is considering opening a new store on October 1, 2013. The company president formed a planning committee to 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 a. October sales are estimated to be $200,000, of which 40 percent will be cash and 60 percent wil be credit. The company expects b. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale c. The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory oqual ta 10 percent of sales to increase at the rate of 25 percent per month. Prepare a sales budoet Prepare a schedule of cash receipts the next month's cost of goods sold. However, ending inventory of December is expected to be $12,000. Assume that al purchases are made on account. Prepare an inventory purchases budget d. The company pays 70 percent of acounts payable in the month of purchase and the remaining 30 percent in the following montr e. Budgeted seling and administrative expenses per month Prepare a cash payments budget for inventory purchases $18,000 Salary expense (fixed) Sales commissions Supplies expense utilities (fixed) Depreciation on store fixtures (fixed)* Rent (fixed) Miscellaneous (fixed) 5% of Sales 2% of Sales s1,480 $4,880 5 4,880 s 1,280 Prev 1 2 of 2 Next >