Requirements 1.a. 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 $335,000, consisting of $60,000 in cash and $275,000 on credit. The company expects sales to increase at the rate of 20 percent per month. All accounts recelvable are collected in the month following the sale. 1.b. 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 $50,000. The cost of goods sold for October is expected to be $82,000. The cost of goods sold is expected to increase by 20 percent per month. The company expects to maintain a minimum ending inventory equal to 30 percent of the current month's cost of goods sold. Seventy-flve percent of accounts payable is paid in the month that the purchase occurs; the remaining 25 percent is paid in the following month. 1.c. Based on the following selling and administrative expenses budgeted for October, prepare a selling and administrative expenses budget for October, November, and December. 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