work Line following Information applies to the questions displayed below./ Baird 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 $300,000, 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 $12,100. Assume that all purchases are made on account. Prepare an inventory purchases budget. d. The company pays 80 percent of accounts payable in the month of purchase and the remaining 20 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) $ 18, 100 Sales commissions 4 % of Sales Supplies expense 2 % of SalesRequired information d. The company pays 80 percent of accounts payable in the month of purchase and the remaining 20 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) $ 18, 100 Sales commissions 4 % of Sales Supplies expense 2 % of Sales Utilities (fixed) $ 1, 500 Depreciation on store fixtures (fixed)* $ 4, 100 Rent (fixed) $ 4,900 Miscellaneous (fixed) $ 1, 300 *The capital expenditures budget indicates that Baird will spend $119,400 on October 1 for store fixtures, which are expected to have a $21,000 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 incurred; all other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses. g. Baird 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 $13,000 cash balance. Prepare a cash budget.Baird 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 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. es Complete this question by entering your answers in the tabs below. Required H Required I Required J Prepare a pro forma income statement for the quarter.Required H Required I Required ] Prepare a pro forma income statement for the quarter. BAIRD COMPANY Pro Forma Income Statement For the Quarter Ended December 31, year 1 0 0 0Required H Required I Required J Prepare a pro forma balance sheet at the end of the quarter. Note: Amounts to be deducted should be indicated by a minus sign. BAIRD COMPANY Pro Forma Balance Sheet December 31, year 1 Assets 0 Total assets LiabilitiesTotal assets 0 Liabilities Equity Total liabilities and equity 0Required H Required I Required J Prepare a pro forma statement of cash flows for the quarter. Note: Amounts to be deducted should be indicated by a minus sign. BAIRD COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31, year 1 Cash flows from operating activities Net cash flows from operating activities 0 Cash flows from investing activities Rach flows from financing antivitingPro Forma Statement of Cash Flows For the Quarter Ended December 31, year 1 Cash flows from operating activities Net cash flows from operating activities 0 Cash flows from investing activities Cash flow from financing activities 0Required H Required I Required J Prepare a pro forma income statement for the quarter. BAIRD COMPANY Pro Forma Income Statement For the Quarter Ended December 31, year 1 Cost of goods sold Interest expense 0 Rent expense Sales revenue $ 0 Selling and administrative expenses Required H Required I >Required H Required I Required J Prepare a pro forma balance sheet at the end of the quarter. Note: Amounts to be deducted should be indicated by a minus sign. BAIRD COMPANY Pro Forma Balance Sheet December 31, year 1 Assets Accounts payable Accounts receivable Accumulated depreciation $ ODecember 31, year T Assets Accounts payable Accounts receivable O Accumulated depreciation $ 0 Book value of fixtures EquityDecember 57, year T Assets Accounts payable Accounts receivable Accumulated depreciation + Book value of fixtures 0 Cash EquityRequired information December 31, year T Assets Cash Inventory Line of credit liability Retained earnings + O 0 Sales commissions payable EquityRequired information December 31, year T Assets Cash Inventory Line of credit liability Retained earnings + O 0 Sales commissions payable EquityCollipiece Is question by entering your answers InI LIle LADS DeIOW. Required H Required I Required J Prepare a pro forma statement of cash flows for the quarter. Note: Amounts to be deducted should be indicated by a minus sign. BAIRD COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31, year 1 Cash flows from operating activities Cash payment for store fixtures Cash payments for selling and administrative expenses $ 0 Cash payments for interest expenseCollipiece Is question by entering your answers InI LIle LADS DeIOW. Required H Required I Required J Prepare a pro forma statement of cash flows for the quarter. Note: Amounts to be deducted should be indicated by a minus sign. BAIRD COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31, year 1 Cash flows from operating activities Cash payment for store fixtures Cash payments for selling and administrative expenses $ 0 Cash payments for interest expenseRequired information For the Quarter Ended December 31, year 1 Cash flows from operating activities Cash payment for store fixtures Cash payments for selling and administrative expenses Cash payments for interest expense Cash payments for inventory Cash payments for rent Cach rocainte from curtamarc