Thornton Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. 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 $400,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 30 percent per month. Prepare a sales budget. Prepare a schedule of cash receipts. the next month's cost of goods sold. However, ending inventory of December is expected to be $13,500. Assume that all purchases b. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale 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 are made on account. Prepare an inventory purchases budget. d. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 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) $19,500 Sales commissions 4 % of Sales 2 % of Sales Supplies expense Utilities (fixed) $ 2,900 $ 5,500 $ 6,300 $ 2,700 Depreciation on store fixtures (fixed)* Rent (fixed) Miscellaneous (fixed) The capital expenditures budget indicates that Thornton will spend $167,000 on October 1 for store fixtures, which are expected to Use this information to prepare a selling and administrative expenses budget. have a $35,000 salvage value and a two-year (24-month) useful life f. Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they g. Thornton borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in any are incurred. Prepare a cash payments budget for selling and administrative expenses 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 $27,000 cash cushion. Prepare a cash budget