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. Cash Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Totals $ 16,000 60,000 40,000 200,000 $ 76,800 72,000 100,000 50,000 $316,000 17,200 $316,000 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. Sales commissions (10% increase per month) Supplies expense (10% increase per month) Utilities (fixed) Depreciation on store equipment (fixed) Salary expense (fixed) Rent (fixed) Miscellaneous (fixed) $ 7,200 1,800 2,200 1,600 34,000 6,000 1,000 Cash payments for sales commissions and utilities are made in the month following the one in which the expense is incurred. Supplies and other operating expenses are paid in cash in the month in which they are incurred. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 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. Sales Budget Cash sales Sales on account Total budgeted sales Schedule of Cash Receipts Cash sales Collections from accounts receivable Total cash collections October November December $ 40,000 140,000 $ 180,000 < Req A1 Req A2 > Show less A 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. Cash Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Totals $ 16,000 60,000 40,000 200,000 $ 76,800 72,000 100,000 50,000 $316,000 17,200 $316,000 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. Sales commissions (10% increase per month) Supplies expense (10% increase per month) Utilities (fixed) Depreciation on store equipment (fixed) Salary expense (fixed) Rent (fixed) Miscellaneous (fixed) $ 7,200 1,800 2,200 1,600 34,000 6,000 1,000 Cash payments for sales commissions and utilities are made in the month following the one in which the expense is incurred. Supplies and other operating expenses are paid in cash in the month in which they are incurred. Complete this question by entering your answers in the tabs below. Req Al Req A2 Req A3 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. Show less A Inventory Purchases Budget October November December Inventory needed Required purchases (on account) Schedule of Cash Payments Payment of current months' accounts payable Payment for prior month's accounts payable Total budgeted payments for inventory 0 0 0 $ 0 $ $ 0 $ 0 $ 0 $ 0 < Req A1 Req A3 > 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. $ 16,000 Cash Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Totals 60,000 40,000 200,000 $ 76,800 72,000 100,000 50,000 $316,000 17,200 $316,000 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. Sales commissions (10% increase per month) Supplies expense (10% increase per month) Utilities (fixed) Depreciation on store equipment (fixed) Salary expense (fixed) Rent (fixed) Miscellaneous (fixed) $ 7,200 1,800 2,200 1,600 34,000 6,000 1,000 Cash payments for sales commissions and utilities are made in the month following the one in which the expense is incurred. Supplies and other operating expenses are paid in cash in the month in which they are incurred. Complete this question by entering your answers in the tabs below. Req A1 Req Az Req A3 Based on the following selling and administrative expenses budgeted for October, prepare a selling and administrative expenses budget for October, November, and December. October November December Sales commissions $ 7,200 Supplies expense 1,800 Utilities 2,200 Depreciation on store equipment 1,600 Salary expense 34,000 Rent 6,000 Miscellaneous 1,000 Total S&A expenses $ 53,800 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. Cash Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Totals $ 16,000 60,000 40,000 200,000 $ 76,800 72,000 100,000 50,000 17,200 $316,000 $316,000 b. Supply the missing information in the following pro forma income statement and balance sheet for the fourth quarter of year 2. The statements are prepared as of December 31, year 2. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Supply the missing information in the following pro forma income statement for the fourth quarter of year 2. The statement is prepared as of December 31, year 2. Income Statement Sales revenue Cost of goods sold Gross margin 357,480 Operating expenses Operating income 193,290 Interest expense (2,530) Net income $ 190,760 < Income Statement Balance Sheet > 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. Cash Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Totals $ 16,000 60,000 40,000 200,000 $ 76,800 72,000 100,000 50,000 17,200 $316,000 $316,000 b. Supply the missing information in the following pro forma income statement and balance sheet for the fourth quarter of year 2. The statements are prepared as of December 31, year 2. Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Supply the missing information in the following pro forma balance sheet for the fourth quarter of year 2. The statement is prepared as of December 31, year 2. (Amounts to be deducted should be indicated by a minus sign.) Assets Cash Accounts receivable Inventory Store equipment Balance Sheet Accumulated depreciation store equipment Book value of equipment Total assets Liabilities Accounts payable Utilities payable Sales commissions payable Line of credit Equity Common stock Retained earnings Total liabilities and equity $ 200,000 $ 9,760 118,400 $ 314,984 23,936 50,000 $ 314,984 < Income Statement Balance Sheet > 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. Cash Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Totals $ 16,000 60,000 40,000 200,000 $ 76,800 72,000 100,000 50,000 17,200 $316,000 $316,000 c. Indicate whether Havel will need to borrow money during October by preparing October's Cash Budget. (Negative amounts should be indicated by a minus sign.) Cash Budget for October Cash available Less: Payments Total budgeted payments Cash surplus (shortage) Will Havel need to borrow money during October? 0 0