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Required information The following information Apple to the questione played below) Perez Company is a retail. comperry that specializes in selling outdoor camping equipment. The

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Required information The following information Apple to the questione played below) Perez Company is a retail. comperry that specializes in selling outdoor camping equipment. The company is corridering opening a new store on October 2009. The company president formed a ploring committee to prepere a master budget for the first three months of operation. As budget coordinator, you have been assigned the following faste ih 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 Scoples expense vtilities (ed) Depreciation on store fixtures (fixed) Miscellaneous (fixed) 119.000 ST of Sales 21 of Sales 3 2,400 15,00 1 2.200 The capital expenditures budget indicates thet Perez will 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 fuses 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 coth payments budget for selling and administrative expenses g. Perex borrows funds, in increments of $1000, and repoys 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 $22.000 con cushion Prepare och budget Complete this question by entering your answers in the tabs below. Required Required Reque Recured The cost of goods sold is 60 percent of sales. The company desista ailem ending inventory equal to 10 percent of the month's cost of goods we endgrey December is expected to be 13.000. Assume taal purchases are made on Pretty purchases to October November December Inventory Purchaos Budget ger Required information The following information Apple to the questione played below) Perez Company is a retail. comperry that specializes in selling outdoor camping equipment. The company is corridering opening a new store on October 2009. The company president formed a ploring committee to prepere a master budget for the first three months of operation. As budget coordinator, you have been assigned the following faste ih 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 Scoples expense vtilities (ed) Depreciation on store fixtures (fixed) Miscellaneous (fixed) 119.000 ST of Sales 21 of Sales 3 2,400 15,00 1 2.200 The capital expenditures budget indicates thet Perez will 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 fuses 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 coth payments budget for selling and administrative expenses g. Perex borrows funds, in increments of $1000, and repoys 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 $22.000 con cushion Prepare och budget Complete this question by entering your answers in the tabs below. Required Required Reque Recured The cost of goods sold is 60 percent of sales. The company desista ailem ending inventory equal to 10 percent of the month's cost of goods we endgrey December is expected to be 13.000. Assume taal purchases are made on Pretty purchases to October November December Inventory Purchaos Budget ger

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