You are the Chief Financial offcer (cFo forzen Distributors, Inc., a media broker that secures shelf space in independent bookstores for small publishing companies. As a member of the company's executive team, you are preparing the operating budget for the fourth quarter of2017. Your intent is to summarize the budget for team members and provide them with detailed schedules that support your of Zen's general ledger provides you with current account data on September 30, 2017 (the en the third quarter) ofoperations: Debit Credit Accounts (account amounts in thousands of dollars 8,000 Cash 20,000 Accounts receivable 36,000 Invento Buildings and equipment, net of depreciation S 21.750 Accounts payable 150,000 Common stock Retained $184,000 $184,000 Totals Jack Closer, Vice President ofsales, estimated that sales should increase slightly from their fourth quarter levels of the previous year. Per your request, he forwarded his monthly fourth quarter sales estimates to you, along with the current month's actual sales and his forecast for January 2018 Month 50,000 September (actual 60,000 October 72,000 90,000 January 2018 48,000 You next met with Mary Balance, Zen's Controller. Ms. Balance informed you that the company prices its products in order to ensure a 25% gross profit margin on sales. Zen has met that margi throughout the first three quarters of 2017, and she was confident that the firm would meet this target margin in the near term. Mary also told you on 60% ofzen's customer pay in cash. Those customers receive a one percent discount on the invoice price. credit The remaining 40% of the invoice price by the end of the month following the This means which on Credit sales terms are n/2EoM must pay customers customers pay the full they purchased merchandise. Mary explained, "Our customers are pretty sophisticated, and they they will pay us by the end of November, Finally, Mary said, "We screen our sale in october before extending them credit. Our customers pay what they owe us. We custom very carefully don't have any bad debts, don't expect any in the future." We budget. Mary also provided you with monthly expense data to assist in constructing your The next table presents that information: 22