The following is available for the Newport Stationery Store:Balance Sheet Information for September 30, 2016:Current Assets. Cash $12,000Accounts Receivable 10,000Inventory 63,600Equipment (net) 100,000Liabilities 0Recent and Anticipated SalesSeptember $40,000October 48,000November 60,000December 80,000January 36,000Sales:Sales are for cash (75%) and credit (25%). Assume that all credit sales are collected within 30 days ofsale. All accounts receivable on September 30 are from September sales.Operating Costs:Rent, $750; Salaries and wages average 15% of monthly sales; other operating expenses excludingdepreciation, 4%; Depreciation is $1000 per month. Assume all expenditures are paid each month.Purchases:Newport maintains an ending merchandise inventory each month equal to next month?s sales plus$30,000. Terms on purchases are 2/10, n/30. Newport takes all discounts and treats these discounts asother income on the income statement. Gross margin averages 30% of sales.Cash Balances:Newport must maintain a minimum cash balance of $8,000. Assume all borrowing is made on the 1st ofthe month and repaid at the end of the month when funds are available. Loans are made in incrementsof $1000 and management does not want to borrow any more than necessary. The interest rate is 6%and is repaid when funds are available.Other Information:Newport is replacing some store fixtures and is planning on spending $600 in October and $400 inNovember. Newport is capitalizing these expenditures.Required:1. Completed the budget schedules for Newport.2. Prepare a budgeted income statement and balance sheet for the 4th quarter 2016

The following is available for the Newport Stationery Store: Balance Sheet Information for September 30, 2016: Current Assets . Cash $12,000 Accounts Receivable 10,000 Inventory 63,600 Equipment (net) 100,000 Liabilities 0 Recent and Anticipated Sales September October November December January $40,000 48,000 60,000 80,000 36,000 Sales: Sales are for cash (75%) and credit (25%). Assume that all credit sales are collected within 30 days of sale. All accounts receivable on September 30 are from September sales. Operating Costs: Rent, $750; Salaries and wages average 15% of monthly sales; other operating expenses excluding depreciation, 4%; Depreciation is $1000 per month. Assume all expenditures are paid each month. Purchases: Newport maintains an ending merchandise inventory each month equal to next month's sales plus $30,000. Terms on purchases are 2/10, n/30. Newport takes all discounts and treats these discounts as other income on the income statement. Gross margin averages 30% of sales. Cash Balances: Newport must maintain a minimum cash balance of $8,000. Assume all borrowing is made on the 1 st of the month and repaid at the end of the month when funds are available. Loans are made in increments of $1000 and management does not want to borrow any more than necessary. The interest rate is 6% and is repaid when funds are available. Other Information: Newport is replacing some store fixtures and is planning on spending $600 in October and $400 in November. Newport is capitalizing these expenditures. Required: 1. Completed the budget schedules for Newport. 2. Prepare a budgeted income statement and balance sheet for the 4th quarter 2016