Sallys sunglasses corporation begins business today, December 31, 2018. Sally Burrrows, the president, is trying to prepare the companys master budget for the first three months (January, February, and March) of 2019. Since you are her good friend an an accounting student, Ms, Brown asks you to prepare the budget based on the following specifications.

I have to create an excel spreadsheet as well. How would I do that?

Shaheem Harr Sally's Sunglasses Corporation begins business today, December 31 is trying to prepare the company's master budget for the first three March) of 2019. Since you are her good friend 2010 Since you are her good men and an accounting student, Ms Brown as the budget based on the following specifications. today, December 31, 2018 Sally Burrows, the president get for the first three mooths (January February, and Required January sales are estimated to be $250,000, of which 30 percent will be percent will be credit. The company expects sales to increase at the rate of 10 percent month. Prepare a sales budget. b. The company expects to collect 100 percent of the ac my expects to collect 100 percent of the accounts receivable generated by radit sales in the month following the sale. Prepare a schedule of cash rechts The cost of goods sold is 50 percent of sales. The company desires to maintain minimum ending inventory equal to 20 percent of the next month's cost of goods sold. The anding inventory of March is expected to be $33,000. Assume that all purchases are made on account. Prepare an inventory purchases budget. d. 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. e Budgeted selling and administrative expenses per month follow. Salary expense (fixed) Sales commissions $25,000 Supplies expense 8 percent of Sales Utilities (fixed) 4 percent of Sales Depreciation on store factures (foued) $1,800 Rent (fixed) $5,000 Miscellaneous (fixed) $7,200 $2,000 *The capital expenditures budget indicates that Peters will spend $350.000 on January 1 for store factures. The fixtures are expected to have a $50,000 salvage value and a five-year (60-monthi useful life. Use this information to prepare a selling and administrative expenses budget. 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. The capital expenditures budget indicates that Peters will spend $250,000 on January 1, 2019 for fixtures and $100,000 on February. The January fixtures are expected to have a $50,000 salvage value and a five-year (60 month) useful life. The February fixtures will have a $15000 salvage value and a five month usesful life. h. The company borrows funds, in increments of $1,000, and repays them in any amount available on the last day of the month. It pays interest of 1.5 percent per month in cash on the last day of the month. For safety, the company desires to maintain a $70,000 cash cushion. The company pays its vendors on the last day of the month. Prepare a cash budget. ey's pying Selling and Administrative Expense Budget January February March 1st quarter total Salary expense 25000 25000 25.00 75000 Sales commissions, 8% sales 16 6600 7260. 119860 Supplies expense, 4% sales 2000 3300 2630 91.30 Utilities 11800 1800 1800 15400 5000 5000 15000 15000 Rent 17200 7200 7200 21600 Miscellaneous 2000 2000 2000 6000 Total S&A expenses Spoo 150,90051,890.152790 Schedule of Cash Payments for S&A Expenses January February March Quarter Total 1 - 16000 6000 1800 1800 Salary expense Prior month's sales comm., 100% Supplies expense 100% prior month's utilities, 100% Depreciation on store fixtures Rent Miscellaneous Total payments for S&A expenses Note: Depreciation is a noncash charge. UUR Air Cash Budget 1st Quarter Total January February March Beginning cash balance Add cash receipts Cash available LESS PAYMENTS For inventory purchases For S&A expenses Purchase of store fixtures Interest expense Total budgeted payments RECEIPTS MINUS PAYMENTS: Surplus (shortage) FINANCING ACTIVITY: Borrowing (repayment) Ending cash balance