a. October sales are estimated to be $340,000, of which 40 percent wil 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 recelvable generated by crecit sales in the month following the sale. Prepare a schedule of cash recelpts. c. The cestst 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 $12,900. Assume that all purchases are made on account Prepare an inventory purchases budget d. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. Prepare a cash payments budget for imventory purchases: e. Budgeted selling and administrative expenses per month follow: The capital expenditures budget indicates that Munoz will spend $146,600 on October 1 for store fixtures, which are expected to have a $29,000 salvage value and a two-year (24 month) useful life. Use this information to prepare a seling and odministrative expenses budget. 4. Uilities and sales commissions are paid the month after they are incurred; oll other expenses are paid in the month in which they are incurred. Prepare o cosh poyments budget for selling and odministrative expenses. 9. Munoz bortows funds, in increments of $1,000, and repays them on the lost 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 doy of the month. To be prudent, the company desires to maintain a $21,000 cash balance. Prepare a cash budget. Required information [The following information applies to the questions displayed below] Munoz Company is a retall company that specializes in sellipg 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. a. October sales are estimated to be $340,000, of which 40 percent wil 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 recelvable generated by crecit sales in the month following the sale. Prepare a schedule of cash recelpts. c. The cestst 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 $12,900. Assume that all purchases are made on account Prepare an inventory purchases budget d. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. Prepare a cash payments budget for imventory purchases: e. Budgeted selling and administrative expenses per month follow: The capital expenditures budget indicates that Munoz will spend $146,600 on October 1 for store fixtures, which are expected to have a $29,000 salvage value and a two-year (24 month) useful life. Use this information to prepare a seling and odministrative expenses budget. 4. Uilities and sales commissions are paid the month after they are incurred; oll other expenses are paid in the month in which they are incurred. Prepare o cosh poyments budget for selling and odministrative expenses. 9. Munoz bortows funds, in increments of $1,000, and repays them on the lost 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 doy of the month. To be prudent, the company desires to maintain a $21,000 cash balance. Prepare a cash budget. Required information [The following information applies to the questions displayed below] Munoz Company is a retall company that specializes in sellipg 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