Uncle Company is a retail company that specializes in selling outdoor camping equipment. The

company is considering opening a new store on October $1,2024.$ The company president

formed a planning committee to prepare a master budget for the first three months of

operation. He assigned you, the Chair of the Committee and the budget coordinator, the

following tasks:

Required

a$.$ October sales are estimated to be $$120,000$ of which $40$ percent will be cash and $60$

percent will be credit. The company expects sales to increase at the rate of $25$

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 $60$ percent of sales. The company desires to

maintain a minimum ending inventory equal to $10$ percent of the next

month's cost of goods sold. Ending inventory at December $31$ is expected to be

$$12,000.$ Assume that all purchases 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.

The capital expenditures budget indicates that Uncle will spend $$164,000$ on

October $1$ for store fixtures, which are expected to have a $$20,000$ salvage

value and a three$-$year $(36-$month$)$ useful life.! Also, use the following