Sales are expected to be $81.200 in January, $101.200 in February, and 5106,200 in March. 2. All sales are on credit and it collects 20% of all sales in the month of the sale, the remaining 80% in the month after the sale. 3. The cost of goods sold is equal to 40% of sales. 4. The company likes to keep an ending inventory on hand equal to 15% of next month's cost of goods sold, 5. All purchases of inventory are on account, and the company pays for 60% of all purchases in the month of the purchase, 40% in the month after the purchase. 6. The company pays its sales force a commission equal to 3% of sales 7. The company also believes that its miscellaneous expense is equal to $500 plus 2% of sales B. Rent is $2,000 per month, Supplies are $600 per month and Depreciation is 51,800 per month 9. On January 1st, the company purchased an insurance policy covering 24 months for $28,800. 10. All selling and administrative expenses are paid in the month they are incurred except for commissions that are paid in the month after they are earned and the insurance which is paid two year in advance 11. The company purchased $4,000 of Land on February 18th. They paid cash for the land. 12. Interest on long-term debt is equal to 1% of the beginning balance and is paid each month. The company must maintain a minimum balance in cash of $15,000 and will use any cash surplus to pay down long-term debt. The company borrows cash in $1,000 increments. 13. The company is subject to a 30% income tax rate. The company pays income taxes in the month after they are accrued (expensed) 14. The company's Board of Directors declared a cash dividend of $950 on January 4th. The dividend will be paid on February 10th 15. The company had a beginning balance sheet (as of January 1) as follows: Assets Current Assets Cash Accounts Receivable Prepaid Insurance Inventory Total Current Assets Lilabilities & SE Current Liabilities $16,000 Accounts Payable 48.000 Commissions Payable Oncome Taxes Payable 9600 Dividends Payable 73,600 Total Current Labies $23.500 3.400 9.275 36,175 Long-term Debt 80.000 Property, Plant & Equipment Equipment Land Accumulated Depreciation Net PPE 95.000 Stockholders Equity 8.800 Common Stock 125000) Return Earnings 78.800 Total SE 26.225 10.000 36.225 Total Assets $152,400 Total Liabilities & SE $152,400 Babcats Company's partically completed master budget is as follows: Sales Budget January $81.200 February Credit Sales $101.200 March $106.200 Cash Receipts from Customers From Current Month Credit Sales From Prior Month Credit Sales Total Cash Receipts from Customers (1) (Click to select) Inventory Purchases Budget January February $40,480 March $42.480 COGS Desired Ending Inventory Total Inventory Needed Beginning inventory Inventory Purchases (2) Click to select Cash Payments for Inventory Purchases For Current Month Purchases For Prior Month Purchases Total Cash Payments for Inventory Purchases (3) $40,871 Click to select Selling & Administrative Expenses Budget January February Variable Selling & Administrative Expenses Commissions (Click to select) Miscellaneous Total Variable S&A Expenses 4,060 5060 2000 2.000 Fixed Selling & Administrative Expenses Miscellaneous Rent Supplies Depreciation Insurance Total Fixed S&A Expenses 1800 1800 (5) CEO to select) $6100 $6.100 Cash Payments for S&A Expenses Commissions Utilities Advertising Salaries Depreciation (6) Click to select) Insurance Total Cash Payments for S&A Expenses (Click to select) $7560 $36,924 $7.560 Cash Budget January February Beginning Cash Balance Cash Receipts from Customers Total Cash Available 80 240 Cash Payments For Inventory Purchases For S&A Expenses For Interest 401871 (8) Click to select For Income Taxes For Land Purchase For Dividends Total Cash Payments 87,870 Surplus (Deficit) Co to select Borrowing (Repayment) Ending Cash Balance 39.65 (10) (Ciotole $15.000 Income Statement Income Statement January $81200 February $101200 Sales Less: Variable Expenses COGS Variable S&A Expenses Contribution Margin Less: Fixed Expenses Fixed S&A Expenses Interest Expense Pre-tax Net Income Income Taxes Expense After-tax Net Income Cooke 11328 $26.432 14555 $33.97 Current Assets Liabilities & SE Current Liabilities Accounts Payable Cash 110) (12) (Click to select) (13) Click to select Accounts Receivable Click to Prepaid Insurance Commissions Payable Income Taxes Payable (14) Click to select) Inventory Total Current Assets (15) Click to select Dividends Payable Total Current Liabilities (20) ICE Long-term Debt (21) Toko bele Property, Plant & Equipment Equipment 95,000 Land (17) Click to select) Accumulated Depreciation Net PPE Total Assets 95.000 Stockholders Equity (16) (Click to select) Common Stock Return Earnings Total SE $207,932 Total Liabilities & SE 26.225 26.225 (22) (Code $191,002 $191,002 $207,932