Required Information (The following information applies to the questions displayed below) Camden Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks: Required a. October sales are estimated to be $125,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 8 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 $6,000. Assume that all purchases are made on account. Prepare an inventory purchases budget. d. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. Prepare a cash payments budget for inventory purchases. e. Budgeted selling and administrative expenses per month follow: Balary expense (fixed) Salon commission Supplies expense Utilities (fixed) Depreciation on store fixtures (fixed) Tent (fixed) incellaneous fixed) $9,000 5 of Sales 2. of Sales 6 700 $2,000 $2,400 6600 The capital expenditures budget indicates that Camden will spend $82,000 on October 1 for store fixtures, which are expected to have a $10,000 salvage value and a three-year (36-month) useful life. Use this information to prepare a selling and administrative expenses budget Newt amount available. The company also pays its vendors on the last day of the month. It pays Interest o the last day of the month. To be prudent, the company desires to maintain a $6,000 cash cushion. P Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F Required G October sales are estimated to be $125,000, of which 40 percent will be cash and 60 percent will be credit. Th expects sales to increase at the rate of 8 percent per month. Prepare a sales budget. October November December Sales Budget Cash sales Sales on account Total budgeted sales Required B > Camden borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be amount available. The company also pays its vendors on the last day of the month. It pays Interest of 1 percent per m the last day of the month. To be prudent, the company desires to maintain a $6,000 cash cushion. Prepare a cash bu Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Required G 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. October November December Schedule of Cash Receipts Current cash sales Plus collections from AR Total collections of 2 dit Next > Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Required G 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 $6,000. Assume that all purchases are made on account. Prepare an inventory purchases budget. October November December Inventory Purchases Budget Inventory needed Required purchases (on account) a 1 Prov of 2!! Next > t. Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month la are incurred. Prepare a cash payments budget for selling and administrative expenses. 9. Camden borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be amount available. The company also pays its vendors on the last day of the month. It pays Interest of 1 percent per me the last day of the month. To be prudent, the company desires to maintain a $6,000 cash cushion. Prepare a cash buc Complete this question by entering your answers in the tabs below. Required A Required B Required cRequired D Required E Required F Required G The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. Prepare a cash payments budget for inventory purchases. (Round your final answers to the nearest whole dollar amounts.) November December October Schedule of Cash Payments Budget for Inventory Purchases Payment of current month's accounts payable Payment for prior month's accounts payable Total budgeted payments for inventory Complete this question by entering your answers in the tabs below. Required A Required B Required c Required D Required E Required Required G Prepare a selling and administrative expenses budget. November December October Selling and Administrative Expense Budget Salary expense Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total S&A expenses day the month. To be prudent, the company desires to maintain a $6,000 cash cushion. Prepare a cash budget. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required Required G 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 selling and administrative expenses. November December October Schedule of Cash Payments for S&A Expenses Salary expense Sales commissions Supplies expense Utilities Depreciation on store fixtures Rent Miscellaneous Total payments for S&A expenses Required Requiredo > Prev Next > Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Required G Camden 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 $6,000 cash cushion. Prepare a cash budget (Any repayments/shortage which should be indicated with a minus sign.) Show less Cash Budget October November December Section 1: Cash Receipts M Total cash available Section 2: Cash Payments ces Total budgeted disbursements Section 3: Financing Activities