weeney Corner Shoppe

Sales Budget

For the Months of November and December

$\backslash$table$[[,$November,December$],[$Cash sales,,$],[$Credit sales,,$],[$Total sales,,$]]$

October sales were $$300,000$

Sales are projected to go up by $15\%$ in November $($from the October sales$)$ and another $30\%$ in December $($from the November sales$)$ and then return to the October level in January.

$20\%$ of sales are made in cash, while the remaining $80\%$ are paid by credit or debit cards. The credit card companies and banks $($debit card issuers$)$ charge a $2\%$ transaction fee, and deposit the net amount $($sales price less the transaction fee$)$ in the store's bank aocount daily.

Sweeney Corner Shoppe's gross profit is $30\%$ of its sales revenue.

For the next several months, the store wants to maintain an ending merchandise inventory equal to $$17,000+10\%$ of the next month's cost of goods sold. The September $30$ inventory was $$38,000.$

Expected monthly operating expenses include:

Wages of store workers are $$8,800$ per month

Utilities expense of $$1,300$ in November and $$1,400$ in December

Property tax expense of $$2,400$ per month

Property and liability insurance expense of $$1,000$ per month

Prepare the following budgets for November and December:

Sales budget

Cost of goods sold, inventory, and purchases budget

Operating expense budget

Budgeted income statement