Zachary Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. 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: Problem 14-23 Part 1 Required October sales are estimated to be $300,000, of which 40 percent will be cash and 60 percent will be credit. The company expects a. sales to increase at the rate of 20 percent per month. Prepare a sales budget Prepare a schedule of cash receipts. the next month's cost of goods sold. However, ending inventory of December is expected to be $13,800. Assume that all purchases b. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. c. The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of are made on account. Prepare an inventory purchases budget d. The company pays 70 percent of accounts payable in the month of purchaseand the remaining 30 percent in the following month. Prepare a cash payments budget for inventory purchases. e. Budgeted selling and administrative expenses per month follow $19,800 Salary expense (fixed) Sales commissions Supplies expense Utilities (fixed) Depreciation on store fixtures (fixed) Rent (fixed) Niscellaneous (fixed) 4 t of Sales 2tof Sales s 3,200 s 5,800 $ 6,600 $ 3,000 Required information The capital expenditures budget indicates that Zachary will spend $246,800 on October 1 for store fixtures, which are expected to have a $38,000 salvage value and a three-year (36-month) useful life. Use this information to prepare a selling and administrative expenses budget are incurred. Prepare a cash payments budget for selling and administrative expenses. amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in cash on f. Utilities and sales commissions are paid the month after they are incurred, all other expenses are paid in the month in which they 9. Zachary borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in any the last day of the month. To be prudent, the company desires to maintain a $30,000 cash cushion. Prepare a cash budget Complete this question by entering your answers in the tabs below Required A Required B Required C Required D Required E Required Required G Zachary 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 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $30,000 cash cushion. Prepare a cash budget. (Any repayments/shortage which should be indicated with a minus sign.) Show less Zachary 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 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $30,000 cash cushion. Prepare a cash budget. (Any repayments/shortage which should be indicated with a minus sign) Show less A Cash Budget October November December Beginning cash balance Add: Cash receipts Cash available Less: Payments 324,000 324,000 120,000 20,000 141,120 214,704 239,052 For selling and administrative expensos Purchase of store fixtures 246,800 Interest expense Total budgeted payments 387,920 214,704 239,052 Payments minus receipts Surplus (shortage) (267,920) 09,296(239,052) Financing activity Borrowing (repayment) $ (267.920)S 109,296 (239,052) Ending cash balance dit View History Bookmarks Develop Window Help KSuMal D2 Correct wovos canvas GT Goog e Twite, redat YouTube Tasten roject Required information Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E RequiredF Required G they are incurred. Prepare a cash payments budget for selling and administrative expenses. Schedule of Cash Payments for S&A Expenses Salary expense $ 19,800 .800 19 S 19,800 12.000 7.200 Supplies expense 3,200 Depreciation on store fatures 3,000 Total payments for S&A expenses $ 35,400 51,80055,640 Required E Prev 1 2 of 2 Next > 3 4 5 6 7 8 9 1 Required information Problem 14-23 Preparing a master budget for retail company with no beginning account balances LO 14- 2, 14-3, 14-4, 14-5, 14-6 The following information applies to the questions displayed below Zachary Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. 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 Problem 14-23 Part 2 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. Required H Required I Required J Prepare a pro forma income statement for the quarter ZACHARY COMPANY Pro Forma Income Statement or the Quarter Ended December 31, 2019 1 0 0 ZACHARY COMPANY Pro Forma Balance Sheet December 31, 2019 Assets Total assets Liabilities Equity Total liabilities and equity Required information Required H RequiredI Required Prepare a pro forma statement of cash flows for the quarter. (Amounts to be deducted should be indicated by a minus sign.) ZACHARY COMPANY Pro Forma Statement of Cash Flows For the Quarter Ended December 31, 2019 Cash flows from operating activities Net cash flows from operating activities Cash flows from investing activities Cash flow from financing activities Required I red