Retur Required information (The following information applies to the questions displayed below.) Perez Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, year 1. 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 $220,000, of which 45 percent will be cash and 55 percent will be credit. The company expects sales to increase at the rate of 20 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 $13,000. Assume that all purchases are made on account. Prepare an inventory purchases budget. d. The company pays 80 percent of accounts payable in the month of purchase and the remaining 20 percent in the following month. Prepare a cash payments budget for inventory purchases. e. Budgeted selling and administrative expenses per month follow. Salary expense (fixed) $19,000 Returr Dronara Rehnumante hidrottar innrantannurekanan Required information Salary expense (fixed) Sales commissions Supplies expense Utilities (fixed) Depreciation on store fixtures (fixed)* Rent (fixed) Miscellaneous (fixed) $19,000 5% of Sales 2% of Sales $ 2,400 $ 5,000 $ 5,800 $ 2,200 *The capital expenditures budget indicates that Perez will spend $210,000 on October 1 for store fixtures, which are expected to have a $30,000 salvage value and a three-year (36-month) useful life. Use this information to prepare a selling and administrative expenses budget. f. 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. g. Perez 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 $22,000 cash cushion. Prepare a cash budget. Answer is not complete. Answer is not complete. 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 $220,000, of which 45 percent will be cash and 55 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget. October November December Sales Budget Cash sales Sales on account Total budgeted sales $ 99,000 $ 121,000 $ 220,000 $ 118,800 $ 145,200 264,000 $ 142,560 174,240 316,800 % Answer is not complete. 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 $ 99,000 Schedule of Cash Receipts Current cash sales Plus collections from AIR Total collections $ 118,800 121,000 $ 239,800 $ 142,560 145,200 $ 287,760 $ 99,000 u. reie LOTUS UUS TEMES ULDIVU AU FUAVs HEITUM Iasi UAV ULME MOT REUAVITIEMS Mavue Haut I liv Required information Answer is not complete. 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 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 $13,000. Assume that all purchases are made on account. Prepare an inventory purchases budget. October November December $ Inventory Purchases Budget Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases (on account) 132,000 15,840 147,840 $ 158,400 19,008 177,408 (15,840) $ 161,568 $ 190,080 13,000 203,080 (19,008) $ 184,072 147,840 RO u. FEIFI DOTTU TULUS IIIIIIIIIIIIS UL.DIUUU UU ITUAV TEIL OLI IASI UAV ULTIMIT NEUVILCHIS II IV V lete III di ! Required information Answer is not complete. 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 The company pays 80 percent of accounts payable in the month of purchase and the remaining 20 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 $ 118,272 Payment for prior month's accounts payable Total budgeted payment for inventory 118,272 $ 129,254 29,568 $ 158,822 $ 147,258 32,314 $ 179,572 $ Required A Required B Required C Required D Required E Required F Required G Prepare a selling and administrative expenses budget. November December $ $ October Selling and Administrative Expense Budget Salary expense $ 19,000 Sales commissions 11,000 Supplies expense 4,400 Utilities 2,400 Depreciation on store fixtures 5,000 Rent 5,800 Miscellaneous 2,200 Total S&A expenses $ 49,800 19,000 13,200 5,280 2,400 5,000 5,800 2,200 52,880 19,000 15,840 6,336 2,400 5,000 5,800 2,200 56,576 $ $ Required information Required A Required B Required C Required D Required E Required F. 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 $ 19,000 Sales commissions Supplies expense 4,400 Utilities Depreciation on store fixtures Rent 5,800 Miscellaneous 2,200 Total payments for S&A expenses 31,400 19,000 11,000 5,280 2,400 19,000 13,200 6,336 2,400 5,800 2,200 45,680 5,800 2,200 48,936 $ $ Required information Perez 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 $22,000 cash cushion. Prepare a cash budget. (Any repayments/shortage which should be indicated with a minus sign.) Show less Cash Budget October November December $ 99,000 99,000 22,328 239,800 262, 128 287,760 287,760 Section 1: Cash Receipts Beginning cash balance Add: Cash receipts Total Cash available Section 2: Cash Payments For inventory purchases Purchase of store fixtures For selling and administrative expenses Interest expense 118,272 210,000 31,400 48,936 45,680 2,830 Total budgeted disbursements 359,672 48,510 48,936