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Required information The following information applies to the questions displayed below. Adams 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: Required a. October sales are estimated to be $200,000, of which 40 percent will be cash and 60 percent will be credit. The company expects 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 sales to increase at the rate of 25 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 $12,000. 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 inventory purchases

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