Walton Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, year 1. 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 $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. -The capital expenditures budget indicates that Walton will spend $173,800 on October 1 for store fixtures, which are expected to have a \$37,000 salvage value and a two-year (24-month) useful lfe. Use this information to prepare a selling and administrative expenses budget. f. Utaities 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. Repoyments may be made in anyl amount avallable. 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. i. Prepare a pro forma balance sheet at the end of the quarter j. Prepare a pro forma statement of cash flows for the quarter Complete this question by entering your answers in the tabs below. October sales are estimated to be $390,000, of which 40 percent will be cashand 60 percent will be credit. The company expecti salest to increase at the rate of 20 percent per month. Prepare a salos budgot. 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 follo Prepare a cash payments budget for inventory purchases. e. Budgeted selling and administrative expenses per month follow. "The capital expenditures budget indicates that Walton will spend $173.800 on october 1 for store tixtures. which are ex 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 incured all other expenses are paid in the month in w are incurred. Prepare a cash payments budget for selling and administrattie expenses. 9. Walton borrows funds, in increments of $1,000, and repays them on the last fay of the month. Repayments may be made amount available. The company also pays its vendors on the fast day of the month it pays interest of 2 percent per mont on the last day of the month. To be prudent, the company desiresto mantaing 529000 cash cushon prepare a cush bt 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 Complete this question by entering your answers in the tabs below. October sales are estimated to be $390,000, of which 40 percent will be cash and 60 percent will be credit. the corrpany expects sales to increase at the rate of 20 percent per month. Prepare a sales budget. Complete this question by entering your answers in the tabs below. The company expects to collect 100 percent of the accounts receivable generated by credit sales in sale. Prepare a schedule of cash receipts. Complete this question by entering your answers in the tabs below. 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. Complete this question by entering your answers in the tabs below. 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.) Complete this question by entering your answers in the tabs below. Prepare a selling and administrative expenses budget. Complete this question by entering your answers in the tabs below. 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. 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 should be indicated with a minus sign.) Complete this question by entering your answers in the tabs below. Prepare a pro forma income statement for the quarter. Complete this question by entering your answers in the tabs below. Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a mine Complete this question by entering your answers in the tabs below. Prepare a pro forma statement of cash flows for the quarter. (cash outflows should be inficated with 3 . minus sign