Use data provided below to create:

- Schedule of payments

- Selling Expense Budget

- General and Administrative Budget

- Capital Expenditure Budget

- Depreciation Schedule

- Cash Budget

The Accounts Receivable beginning balance is expected to be received 60% in October and 40% in November. Purchase cost is $50 per unit. Ending inventory is anticipated to be 25% of the next months sales in units. Payments for the inventory purchases are expected to be paid in the following manner: 40% in the month after purchase and the remainder in the second month after purchase. The accounts payable beginning balance will be collected 40% in October and 60% in November. Other payables are expected to be: Sales Commissions at 2% of sales, Sales Salaries at $10,000 per month, and advertising at $2,000 per month. General and administrative salaries are $12,500 per month, rent on the office space is $13,500 per month, and clerical wages are $15,000 per month. Office supplies are anticipated to be $375 per month. The company plans to purchase for cash: new computer equipment in October for $90,000; a new truck in November for $126,000; and new software in December for $3,600. Depreciation begins that month. The prepaid insurance will expire in December and is not to be renewed. The current portion of Long Term Debt will be paid in December. Cash balance is required to be $145,000 per month. The interest rate is 10% per year on bank borrowings. Interest must be paid monthly on all bank borrowings. You cannot pay back a loan if you need to borrow. If you need to borrow to establish the minimum cash balance, that loan is a line-of- credit loan. The beginning note payable to the bank is not a line of credit requiring a minimum cash balance. The beginning cash at $45,000 is correct. Depreciation is calculated using the straight-line method using the following: 5 year life on all but the computer software, which is 3 year life. You do not have to re-set up Income and Payroll Taxes Payable as you are paying them off this final quarter of the year. Round all numbers up to the nearest dollar, comma format.