Requirement 1-2: Done

Requirement 3: Prepare an operating expense budget for November and December.

Next Requirement 4: Prepare a budgeted income statment

Requirement 5: Prepare a cash collections budget

Requirement 6: Prepare a cash payments budget

Requirement 7: Prepare a combined cash budget

Penny Saver Store is a local discount store with the following information: EEB (Cick the icon to view the information.) Read the requirements. Data Table October sales are projected to be $340,000. Sales are projected to increase by 15% in November and another 20% in December and then return to the October level in January 20% of sales are made in cash while the remaining 80% are paid by credit or debit cards. The credit card companies and banks (debit card issuers) charge a 5% ransaction fee, and deposit the net amount (sales price less the transaction fee) in the store's bank account daily. The store does not accept checks. Because of the payment mechanisms, there is no risk of non-payment or bad-debts. * The store's gross profit is 25% of its sales revenue. uirements For the Months of November and December . November December * 293,250 S Cost of goods sold Plus: Desired ending inventory Total inventory required Less: Beginning inventory 351,900 43,500 395,400 53.190 Prepare the following budgets for November and 53,190 346,440 S 47,325 299,115 S 1. 2. 3. 4. 5. 6. 7. Sales budget Cost of goods sold, inventory, and purchases budget Operating expense budget Budgeted income statement Cash collections budget Cash payments budget Combined cash budget For the next several months, the store wants to maintain an ending merchandise inventory equal to $18,000 plus 10% of the next month's cost of goods sold. Al purchases for merchandise are made on account and paid in the month following the purchase. The September 30 inventory is expected to be $43,500 Requirement 3. Prepare the operating expense budget for November and December .Expected monthly operating expenses and details about payments include the Penny Saver Store Cash Payments for Operating Expenses Budget For the Months of November and December Wages of store workers should be $7,300 per month and are paid on the last day of each month. Utilities expense is expected to be $1,300 per month in September, October, and Utilities expense is expected to be $1,800 per month during the colder months of Print Done 0 Wage expense Utilities expense Property tax expense Property and liability insuranse expenso Depreciation expense Credit/Debit card fees expense Total operating expenses December, January, and February Property tax is $16,800 per year and is paid semiannualy ech December and Property and liability insurance is $18,000 per year and is paid semiannually each All utility bills are paid the month after incurred. January and July . Depreciation expense is $168,000 per year, the straight-line method used. . Transaction fees, as stated earlier, are 5% of credit and debit card sales. Cash dividends of $280,000 are to be paid in December Assume the cash balance on October 31 is S55,000. The company wants to maintain