Dollar Plus Store is a local discount store with the following information:

OctoberOctober sales are projected to be $ 400 comma 000$400,000.
times	Sales are projected to increase by 1010% in NovemberNovember and another 2020% in DecemberDecember and then return to the OctoberOctober level in JanuaryJanuary.
times	2525% of sales are made in cash while the remaining 7575% are paid by credit or debit cards. The credit card companies and banks (debit card issuers) charge a 22% 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.
	times	The store's gross profit is 3030% of its sales revenue.
	times	For the next several months, the store wants to maintain an ending merchandise inventory equal to $ 19 comma 000$19,000 plus 1515% 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 SeptemberSeptember 30 inventory is expected to be $ 61 comma 000$61,000.
times	Expected monthly operating expenses and details about payments include the following:
	times	Wages of store workers should be $ 7 comma 200$7,200 per month and are paid on the last day of each month.
	times	Utilities expense is expected to be $ 1 comma 400$1,400 per month in SeptemberSeptember, OctoberOctober, and NovemberNovember.
	times	Utilities expense is expected to be $ 1 comma 800$1,800 per month during the colder months of DecemberDecember, JanuaryJanuary, and FebruaryFebruary.
	times	All utility bills are paid the month after incurred.
	times	Property tax is $ 25 comma 200$25,200 per year and is paid semiannually each DecemberDecember and JuneJune.
	times	Property and liability insurance is $ 18 comma 000$18,000 per year and is paid semiannually each JanuaryJanuary and JulyJuly.
	times	Depreciation expense is $ 204 comma 000$204,000 per year; the straight-line method used.
	times	Transaction fees, as stated earlier, are 22% of credit and debit card sales.
times	Cash dividends of $ 300 comma 000$300,000 are to be paid in DecemberDecember.
times	Assume the cash balance on OctoberOctober 31 is $ 50 comma 000$50,000. The company wants to maintain a cash balance of at least $ 50 comma 000$50,000 at the end of every month.
times	The company has arranged a line of credit with a local bank at a 44% interest rate. There is no outstanding debt as of OctoberOctober 31.

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

Homework: Chapter 9 Homework Score: 0 of 7 pts 12 of 12 (9 complete) P9-64A (similar to) HW Score: Dollar Plus Store is a local discount store with the following information: (Click the icon to view the information.) Read the requirements. November December Cash sales Credit sales Total sales Enter any number in the edit fields and then click Check