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Dollar Plus Store is a local discount store with the following information: (Click the icon to view the information.) Read the requirements. Requirement 1. Prepare the sales budget for November and December. - October sales are projected to be $400,000 - Sales are projectod to incease by 10% in November and another 20% in December and then rebim to the October level in Januay - 25\% of seles are made in cash while the remaining 75% aw paid by credit or debit cards. The credt card companies and baris (debit caed issuers) charge a 2% bransaction fee, and degosit the net arnount (sales proe less the transaction fee) in the store's bank accourt daly. The store does not acotpt chech. Becasse of the payment mechanismo, there is no risk of non-payment or bud-debts - The tore's gross proft is 30 th of its sules revenue - For the ned soveral months, the atore wacts to maintain an ending merchandise invertory equai to $17,000 plis 15% of the next mootis cost of goods sold. All purchases for merchandise are made on account and paid ih the month followieg the purchase. The Sephenber 30 liventory is expected to be 559,000 . - Expected monthly operating expenses and detals about parments indude the folowing - Waget of etore workers thould be $1,600 per morth and are paid on the last day of ewch month. - Uifisies expense is expecied to be \$1,j00 per morth in September, October, and November - Uvites nxpente is expectod lo be 51,900 per month oung the colder montha of December, January, and Fabruiary. - At vaily bils are peid the mone ahor inauered - Property tax is $18,000 per year and is peld sentianualy each Decenter and Jine. - Property and labilty insurance is 516.800 per year and is ped semiennualy boch January and July - Depecoition expense is $103,000 per year, the traigheine inethod used - Transaction fees, as atased earlec, are 27, of credt and dobit card sules - Cosh dividends of 5250.000 are to be paid in Decerrber. - Assume the cash belance on Octpber 31 is 565,000 . The congany w wits is mantah a cath balanse of at least 565,000 at the end of every morth. - Sales are projected to increase by 10% in Norember and another 20s in December and then teturn to the Octaber level in Jasuary. on accourk and paid in the moenth lolowing the purdan an enging meechandee imentory equel to 317 , ooo plus 15%. of the next monoti cost of goods sold. Ail purchases for merchandise are made Eepectad monny ecenuing expenses and detals suboul peyments neluge the following - Wopes of itore worken should be $7.80 per morth and are peid in the last day of each month + Mividy bales are pad tie morth aher noured - Propety tax in 51 ta00 per year and io gad cetiannueby kaoh Decenter and dune. - Tranaction foes, as stated ealler, are 27s of orede and debec card salee. Cath dividende of 1290,000 are ot be ped in Decender. Dollar Plus Store is a local discount store with the following information: (Click the icon to view the information.) Read the requiremen Requirements Requirement 1. Prep D Prepare the following budgets for November and December: 1. Sales budget 2. Cost of goods sold, inventory, and purchases budget For the Months 3. Operating expense budget 4. Budgeted income statement 5. Cash collections budget 6. Cash payments budget 7. Combined cash budget Requirements Prepare the following budgets for November and December: 1. Sales budget 2. Cost of goods sold, inventory, and purchases budget 3. Operating expense budget 4. Budgeted income statement 5. Cash collections budget 6. Cash payments budget 7. Combined cash budget Data table - October sales are projected to be $380,000. - Sales are projected to increase by 15% in November and another 25% in December and then return to the October level in January. - 30% of sales are made in cash while the remaining 70% are paid by credit or debit cards. The credit card companies and banks (debit card issuers) charge a 4% transaction fee, and deposit the net amount (sales price less the transaction fee) in the store's bank account daily. The store does not accept checks. Because of the payment mechanisms, there is no risk of non-payment or bad-debts. - The store'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 plus 20% of the next month's cost of goods sold. All purchases for merchandise are made on account and paid in the month following the purchase. The September 30 inventory is expected to be $70,200. - For the next several months, the store wants to maintain an ending merchandise inventory equal to $17,000 plus 20% of the next month's cost of goods sold. All purchases for merchandise are made on account and paid in the month following the purchase. The September 30 inventory is expected to be $70,200. - Expected monthly operating expenses and details about payments include the following: - Wages of store workers should be $7,800 per month and are paid on the last day of each month. - Utilities expense is expected to be $1,400 per month in September, October, and November. - Utilities expense is expected to be $1,900 per month during the colder months of December, January, and February. - All utiiity bills are paid the month after incurred. Data table vecember, January, anu reoruary. - All utility bills are paid the month after incurred. - Property tax is $28,800 per year and is paid semiannually each December and June. - Property and liability insurance is $15,600 per year and is paid semiannually each January and July. - Depreciation expense is $180,000 per year; the straight-inne method used. - Transaction fees, as stated earlier, are 4% of credit and debit card sales. - Cash dividends of $200,000 are to be paid in December. - Assume the cash balance on October 31 is $50,000. The company wants to maintain a cash balance of at least $50,000 at the end of every month. - The company has arranged a line of credit with a local bank at a 5% interest rate. There is no outstanding debt as of October 31. Penny Saver Store is a local discount store with the following information: (Click the icon to view the information.) Requirement 1. Prepare the sales budget for November and December