This is one complete question A-J

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Required a. October sales are estimated to be $390,000, of which 40 percent will be cash and 60 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 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month's cost of goods sold. However, ending Inventory of December is expected to be $13,700. 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 (tixed) $19,700 Sales Commissions 49 of Sales Supplies expense 2 of Sales Utilities (fixed) 5 3,100 Depreciation on store fixtures (fixed). $ 5,700 Rent (fixed) 5 6,500 Miscellaneous (fixed) $ 2,900 "The capital expenditures budget indicates that Walton will spend $173,800 on October for store fixtures, which are expected to have a $37,000 salvage value and a two-year (24-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. a. Walton borrows funds. in increments of $1.000 and repavs them on the last dav of the month, Repayments may be made in any 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. 9. Walton 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 2 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $29,000 cash cushion. Prepare a cash budget h. Prepare a pro forma income statement for the quarter. 1. Prepare a pro forma balance sheet at the end of the quarter. j. Prepare a pro forma statement of cash flows for the quarter. October sales are estimated to be $390,000, of which 40 percent will be cash and 60 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 156,000 $ 234,000 390,000 $ 187,200 $ 280,000 467,200 $ 224,640 336,960 561,600 $ Required Required 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. October November December Schedule of Cash Receipts Current cash sales 156,000 $ 187,200 $ 224, 640 Plus collections from AR 234.000 280,800 Total collections $ 156,000 $ 421,200 505,440 $ 0 $ The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $13,700. Assume that all purchases are made on account. Prepare an inventory purchases budget. October November December Inventory Purchases Budget Budgeted cost of goods sold $ 273,000 $ 327,600 $ 393,120 Plus: Desired ending inventory 65,520 78,624 13,700 Inventory needed 338,520 406,224 406,820 Less: Beginning inventory 0 65,520 78,624 Required purchases (on account) $ 338,520 $ 340,704 $ 328,196 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. (Round your final answers to the nearest whole dollar amounts.) October November December Schedule of Cash Payments Budget for Inventory Purchases Payment of current month's accounts payable $ 230,112 $ 204,422 $ 196,918 Payment for prior month's accounts payable 0 135,408 136,282 Total budgeted payment for inventory $ 230,112 $ 339,830 $ 333,200 Prepare a selling and administrative expenses budget October November December Selling and Administrative Expense Budget Salary expense $ 19,700 $ 19,700 $ 19,700 Sales commissions 15,600 18,720 22,464 Supplies expense 7,800 9,360 11,232 Utilities 3,100 3,100 3,100 Depreciation on store fixtures 5,700 5,700 5,700 Rent 6,500 6,500 6,500 Miscellaneous 2,900 2,900 2,900 Total S&A expenses $ 61,300 $ 65,980 $ 71,596 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. October November December Schedule of Cash Payments for S&A Expenses Salary expense $ 19,700 s 19,700 s 19.700 Sales commissions 15,600 18,720 Supplies expense 7.800 9,360 11,232 Utilities 0 3,100 3,100 Depreciation on store fixtures ol 0 Rent 6,500 6,500 6,500 Miscellaneous 2,900 2,900 2.900 Total payments for S&A expenses $ 36,900 $ 57,160 $ 62,152 0 0 Walton 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 2 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $29,000 cash cushion. Prepare a cash budget. (Any repayments/shortage which should be indicated with a minus sign.) Show less Cash Budget October November December $ 0 $ 156,000 156,000 29,188 $ 421,200 450,388 29,000 505,440 534,440 Section 1: Cash Receipts Beginning cash balance Add: Cash receipts Total Cash available Section 2: Cash Payments For inventory purchases For selling and administrative expenses Purchase of store fixtures Interest expense 203,112 36,900 173,800 0 339,830 57,160 0 5,740 333,200 62,152 ol 5,367 413,812 402,730 400,719 Total budgeted disbursements Section 3: Financing Activities Surplus (shortage) Borrowing (repayment) Ending cash balance (257,812) 287,000 29,188 $ 47,658 (18,658) 29,000 $ 133,721 (104.721) 29,000 $ Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.) WALTON COMPANY Pro Forma Balance Sheet December 31, year 1 Assets Cash Accounts receivable Inventory Store fixtures Accumulated depreciation Book value of fixtures 0 Total assets $ 0 Liabilities Accounts payable Utilities payable Sales commissions payable Line of credit liability Equity Retained earnings $ Total liabilities and equity Required H Required 1 Required) Prepare a pro forma statement of cash flows for the quarter. (Amounts to be deducted should be indicated by a minus sign.) WALTON COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31, year 1 Cash flows from operating activities Cash receipts from customers Cash payments for inventory Cash payments for selling and administrative expenses Cash payments for interest expense Net cash flows from operating activities $ Cash flows from investing activities Cash payment for store fixtures Cash flow from financing activities Net inflow from line of credit Net increase in cash Plus: Beginning cash balance $ Ending cash balance 0 0 Required