Problem 14-23A (Algo) Preparing a master budget for retall company with no beginning account balances LO 14-2, 14-3, 14-4, 14-5, 14-6 Rundle Company is a retail company that specializes in seling outdoor camping coment. The companys considering opening a new store on October year 1. The company president formed a planning contesto prepare a master budget for the first three months of operation. As budget coordinato you have been assigned the following tasks Required a. October sales are estimated to be $350.000, of which 35 percent will be cash and 65 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget . 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 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 $13,100. Assume that all purchases are made on account Prepare an inventory purchases budget d. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the following month. Prepare a cash payments budget for inventory burchases e. Budgeted selling and administrative expenses per month follow $19,10 Salary expense (ed) Sales comissions Supplies expense Lilities (Fixed Depreciation Store Fixtures (Fired) Mented Miscellaneous (find) of Sales of Sales 5.2. 55,100 50 2.300 The capital expenditures budget indicates that Runde wil spend $153400 October for store futures, which are expected to have a $31.000 salvage value and a two-year (24-months Use this information to prepare a selling and administrative expenses budget t. Utles and sales commissions are paid the month after they are incurred other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for seling and administrative expenses - Rundle borrows funds, in increments of $1000, and repays them on the last day of the month Repayments may be made in any amount valable. The company also pays it vendors on the last day of the month it pays Interest of percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $23.000 cash cushion Prepare a cash budget h. Prepare a profon income statement for the quartet L. Prepare a proforma balance sheet at the end of the quarter J. Prepare a proforme Statement of cash flows for the quartet Complete this question by entering your answers in the tabs below Tequired Required Required equired de Red Prepare a proforma income statement for the quarter RINDLE COWY Promo For Duarte de embar Year 1 Required A Required B Required C Required D Required E Required F Required G Required H Required 1 Required) Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.) RUNDLE COMPANY Pro Forma Balance Sheet December 31, Year 1 Assets 0 0 Total assets Liabilities Equity 0 Total liabilities and equity Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Required G Required H Required I Required Prepare a pro forma statement of cash flows for the quarter. (Cash outflows should be indicated with a minus sign.) RUNDLE COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31 Year 1 Cash flows from operating activities Net cash flows from operating activities Cash flows from investing activities S 0 Cash flow from financing activities