5. Monthly selling and administrative (S&A) expenses are estimated as follows: Sales salary $30,000 Administrative salary...

  

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5. Monthly selling and administrative (S&A) expenses are estimated as follows: Sales salary $30,000 Administrative salary 15,000 Advertising and promotion 8,000 Depreciation of S&A assets 12,000 Rent 6,000 Property taxes 2,000 Other operating expenses 11,000 Rent cost is prepaid prior to the beginning of a 12-month rental period. The rent cost for 2022 was prepaid in July 2021. Property taxes are paid semiannually on March 31 and September 30 for the preceding six-month period. For example, the property taxes for the six-month period from April to September will be paid on September 30. The remaining selling and administrative expenses are expected to be paid at the end of each month. 6. Somerset expects to have cash balance of $85,000 as of December 31, 2021 Required: Prepare the following budgets for the first quarter of 2022: a. Sales budget b. Purchase budgets c. Selling and administrative budget d. Cash receipts budget e. Cash disbursements budget f. Cash budget g. Budgeted income statement for the first quarter 5. Monthly selling and administrative (S&A) expenses are estimated as follows: Sales salary $30,000 Administrative salary 15,000 Advertising and promotion 8,000 Depreciation of S&A assets 12,000 Rent 6,000 Property taxes 2,000 Other operating expenses 11,000 Rent cost is prepaid prior to the beginning of a 12-month rental period. The rent cost for 2022 was prepaid in July 2021. Property taxes are paid semiannually on March 31 and September 30 for the preceding six-month period. For example, the property taxes for the six-month period from April to September will be paid on September 30. The remaining selling and administrative expenses are expected to be paid at the end of each month. 6. Somerset expects to have cash balance of $85,000 as of December 31, 2021 Required: Prepare the following budgets for the first quarter of 2022: a. Sales budget b. Purchase budgets c. Selling and administrative budget d. Cash receipts budget e. Cash disbursements budget f. Cash budget g. Budgeted income statement for the first quarter

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