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Required information

$[$The following information applies to the questions displayed below.$]$

The following trial balance was drawn from the records of Havel Company as of October $1,$ year $2.$

$\backslash$table$[[$Cash$,$$$16,000,],[$Accounts receivable,$60,000,],[$Inventory$,40,000,],[$Store equipment,$200,000,],[$Accumulated depreciation,,$76,800],[$Accounts payable,,$72,000],[$Line of credit loan,,$100,000],[$Common stock,$50,000,],[$Retained earnings,,$17,200],[$Totals$,,],[,,]]$

Required

a$-1.$ Based on the following information, prepare a sales budget and a schedule of cash receipts for October, November, and December. Sales for October are expected to be $$180,000,$ consisting of $$40,000$ in cash and $$140,000$ on credit. The company expects sales to increase at the rate of $10$ percent per month. All accounts receivable are collected in the month following the sale.

a$-2.$ Based on the following information, prepare a purchases budget and a schedule of cash payments for inventory purchases for October, November, and December. The inventory balance as of October $1$ was $$40,000.$ Cost of goods sold for October is expected to be $$72,000.$ Cost of goods sold is expected to increase by $10$ percent per month. The company expects to maintain a minimum ending inventory equal to $20$ percent of the current month cost of goods sold. Seventy$-$five percent of accounts payable is paid in the month that the purchase occurs; the remaining $25$ percent is paid in the following month.

a$-3.$ Based on the following selling and administrative expenses budgeted for October, prepare a selling and administrative expenses budget for October, November, and December.

$\backslash$table$[[,$$$7,200$