Required a January sales are estimated to be $250,000, of which 30 percent will be cash and 70 percent will be credit. The company expects sales to increase at the rate of 10 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. The cost of goods sold is 50 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. The ending inventory of March is expected to be $33,000. Assume that all purchases are made on account. Prepare an inventory purchases budget. 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 purchases Budgeted selling and administrative expenses per month follow. b. c. d. e. $25,000 8 percent of Sales 4 percent of Sales $1,800 $5,000 S7,200 $2,000 Salary expense(fixed) Sales commissions Supplies expense Utilities (fixed Depreclation on store fixtures (fixed" Rent (fixed) Miscellaneous (fixed) Use this information to prepare a selling and administrative expenses bud and sales commissions are paid the month after they are incurred; all other h in which they are incurred. Prepare a cash payments f. Utilities expenses are paid in the mont budget for selling and administrative expenses. g. The capital expenditures budget indicates that Peters will spend $250,000 on January 1 2019 for fixtures and $100,000 on February. The January fixtures are expected to have a $50,000 salvage value and a five-year (60 month) useful life. The February fixtures will have a $15000 salvage value and a five month usesful life. h. The company borrows funds, in increments of $1,000, and repays them in any amount available on the last day of the month. It pays interest of 1.5 percent per month in cash on the last day of the month. For safety, the company desires to maintain a $70,000 cash cushion. The company pays its vendors on the last day of the month. Prepare a cash budget