Required

1. October sales are estimated to be $260,000, of which 35 percent will be cash and 65 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget.
2. 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.
3. 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 $13,400. Assume that all purchases are made on account. Prepare an inventory purchases budget.
4. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the following month. Prepare a cash payments budget for inventory purchases.
5. Budgeted selling and administrative expenses per month follow:

Salary expense (fixed)$19,400Sales commissions5% of SalesSupplies expense2% of SalesUtilities (fixed)$2,800Depreciation on store fixtures (fixed)*$5,400Rent (fixed)$6,200Miscellaneous (fixed)$2,600*The capital expenditures budget indicates that Stuart will spend $228,400 on October 1 for store fixtures, which are expected to have a $34,000 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 selling and administrative expenses.
2. Stuart 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 $26,000 cash cushion. Prepare a cash budget.

Complete thle queson by enterlng your answers In the tab: below. Required A Required (2 Required D Required E Required F Required G October sales are esmeted to be $260,0DD, of which 35 percent will be cash and 65 percent will be credit. The company expects sales he increase at the mine of 20 percent per month. Prepare a SBIE budget. Cashsales ___ Sales anamount ___ Total budgeted sales ___ Complete this queeon by enterlng your answers In the tabs below. Required B Required C ' ' Required F 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. Schedule efCash Receipt: Current cash sales Plus collections from HR Total collections Complete this queson by entering your answers In the tabs below. Required C ' Required F Required G The cost of goods sold is ED percent of sales. 111e company desires to maintain a minimum ending inventory equal to 1G peroent of the next month's east of goods sold. However, ending inventory of December is expected to be $13,400. Assume that all purchases are made on account. Prepare an inventory purchases budget. neeeeeeeeeeeeeeeeeeee eeeeeeeeeeee \"3-: Complete this queson by entering your answers In the tab: below. -E The company pays 6|) percent of accounts payable in the month of purchase and the remaining 40 percent in the following month. Prepare a cash payments budget for inventory purchasa. (Round your nal answers to the nearest whole dollar amounts.) Schedule of Cash Payments Budget for Inventory Purchases Payment of current month's accounts payable Payment for prior month's accounts payable Total budgeted payment for inventory Complete thle question by enterlng your answers In the tab: below. Prepare a selling and administrative expenses budget. Selling and Administrative Expense Budget Sala ry expense Sales commissions Supplies expense Utilities Depreciation on store xtures Rent Miscellaneous Total SMexpenses $ 0 $ 0 $ 0 Complete this queson by entering your answers In the tails below. Required C ' Required F Ulies and sales commissions are paid the month after theirr 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. Schedule ofCash Payments for Sui-A Expenses Salary expense Sales commissions Supplies expense Utilities Depreciation on store xtures Rent Miscellaneous Total payments for SM expenses a cash budget. [Any repaymentsfshurtage which slinuld be indicated with a minus sign.) Shaw Inn; eashavanable 1\" Less: Payments ___ Total budgeted payments Payments minus receipts - ___ __