Required a. October sales are estimated to be $220,000, 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 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next month's cost of goods sold. However, ending Inventory of December is expected to be $13,000. 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) Sales comissions Supplies expense Utilities (fixed) Depreciation on store fixtures (fixed) Rent (fixed) Miscellaneous (fixed) $19,000 5% of sales 21 of Sales $ 2,400 $ 5,00 $ 2,200 "The capital expenditures budget indicates that Perez wil spend $210,000 on October 1 for store fixtures, which are expected to have a $30,000 salvage value and a three-year (36-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 seling and administrative expenses. 9. Perez borrows funds, in increments of $1.000, 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 it pays Interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $22.000 cash cushion. Prepare a cash budget Complete this question by entering your answers in the tabs below. Required Required Required Required Requiredo The company Days 30 percent of accounts payable in the month of purchase and the remaining 20 percent in the following month. Prepare cash payments budget for inventory purchases. Round your final answers to the nearest whole Soltar November December October Schedule of Cash Payments Budget for inventory Purchase Payment of current month's accounts payable Payment for mor's account Totalbeedens forvento