I cannot determine the correct calculations please help

1 Problem 14-23A (Algo) Preparing a master budget for retail company with no beginning account balances LO 14-2, 14-3, 14-4, 14-5, 14-6 75 point edoak Zachary Company is a retail company that specializes in selling 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. Required .. October sales are estimated to be $300.000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sates budget b. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts 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 the next month's cost of goods sold. However, ending inventory of December is expected to be $13,800. 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. e. Budgeted selling and administrative expenses per month follow. Print References Salary expense (Fixed) 319,800 Sales commission 4X of Sales Supplies expense of Sales ulitis (fixed) $3,200 Depreciation on store fixtures (fixed) 5 5.100 Rent (fixed) 5.5.600 Miscellaneous (fixed) 53,000 "The capital expenditures budget indicates that Zachary wil spend 5246,800 on October for store fixtures, which are expected to have a $38,000 salvage value and a three year (36-month) useful life Use this information to prepare a selling and administrative expenses budget f. Utilities and sales commissions are paid the month after they are incurred all other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses g. Zachary borrows funds, in increments of $1000, and repays them on the last 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 1 percent per month in cash on the last day of the month. To be prudent the company desires to maintain a $30,000 cash cushion Prepare a cash budget h. Prepare a pro forma income statement for the quarter 1. Prepare a pro forma balance sheet at the end of the quarter J. Prepare a pro forma statement of cash flows for the quarter Use this information to prepare a selling and administrative expenses budget. f. Utilities and sales commissions are paid the month after they are incurred, all other expenses are paid in the month in which are incurred. Prepare a cash payments budget for selling and administrative expenses g. Zachary borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in the last day of the month. To be prudent the company desires to maintain a $30,000 cash cushion Prepare a cash budget h. Prepare a pro forma income statement for the quarter, 1. Prepare a pro forma balance sheet at the end of the quarter. J. Prepare a pro forma statement of cash flows for the quarter. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required Required E Required f Required Required H Required Required) October sales are estimated to be $300,000, of which 40 percent will 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. October November December Sales Budget Cash sales Sales on account Total budgeted sales $ 120,000 180,000 s 300,000 $ 168,000 $ 235,200 252,000 352,800 $ 420,000 $ 588,000 HC LOPILICALIS uuuycuIIVICOLCS WILLOLIIQIY WHISPETOUUUUUUUUUCE IL SUICHUICS, WHICIC have a $38,000 salvage value and a three-year (36-month) useful life. Use this information to prepare a selling and administrative expenses budget. f. Utilities and sales commissions are paid the month after they are incurred, all other expenses are paid in the month in w- are incurred. Prepare a cash payments budget for selling and administrative expenses. g. Zachary borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be mad amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month the last day of the month. To be prudent, the company desires to maintain a $30,000 cash cushion Prepare a cash budo h. Prepare a pro forma income statement for the quarter i. Prepare a pro forma balance sheet at the end of the quarter. j. Prepare a pro forma statement of cash flows for the quarter Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Required G Required H Required 1 Required) The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts. October November December Schedule of Cash Receipts Current cash sales Plus collections from A/R Total collections $ 120,000 $ 168,000 $ 235,200 180.000 252,000 3 $ 348,000 Is 487 200 $ 120.000 Use this information to prepare a selling and administrative expenses budget f. Utilities and sales commissions are paid the month after they are incurred all other expenses are paid in the month in which are incurred. Prepare a cash payments budget for selling and administrative expenses. g. Zachary borrows funds, in increments of $1,000, and repays them on the last day of the month Repayments may be made in amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in the last day of the month. To be prudent, the company desires to maintain a $30,000 cash cushion Prepare a cash budget. h. Prepare a pro forma income statement for the quarter 1. Prepare a pro forma balance sheet at the end of the quarter. J. Prepare a pro forma statement of cash flows for the quarter. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required Required Required D Required E Required F Required G | Required H Required 1 Required) The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending Inventory equal to 10 percent of the next month's cost of goods sold. However, ending Inventory of December is expected to be $13,800. Assume that all purchases are made on account. Prepare an inventory purchases budget October November December Inventory Purchases Budget Budgeted cost of goods sold 180,000 S 252.000 $ 352,800 Plus: Desired ending Inventory 25,200 35,280 13.800 Inventory needed 205,200 287,200 366,600 Less Beginning inventory 25 200 35,280 Required purchases (on account) $ 205,200 $ 262,080 331,320 $ for the work you ho Tave d 30,00 Sdivage Value and dee-yedi (30-Thonj uselule. Use this information to prepare a selling and administrative expenses budget f. Utilities and sales commissions are paid the month after they are incurred all other expenses are paid in the month in wh are incurred. Prepare a cash payments budget for selling and administrative expenses g. Zachary borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made amount available. The company also pays its vendors on the last day of the month It pays interest of 1 percent per month the last day of the month. To be prudent, the company desires to maintain a $30,000 cash cushion. Prepare a cash budge h. Prepare a pro forma income statement for the quarter. I. Prepare a pro forma balance sheet at the end of the quarter. J. Prepare a pro forma statement of cash flows for the quarter. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required Required cRequired D Required Required f Required Required H Required Required 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. (Round your final answers to the nearest whole dollar amounts.) November December October Schedule of Cash Payments Budget for Inventory Purchases Payment of current month's accounts payable $ 143.640 Payment for prior month's accounts payable Total budgeted payments for inventory $ 143,640 183,456 S 231,924 61,560 % 78,624 5 245,016 S310548 Use this information to prepare a selling and administrative expenses budget f. Utilities and sales commissions are paid the month after they are incurred, all other expenses are paid in the month in wh are incurred. Prepare a cash payments budget for selling and administrative expenses. g. Zachary borrows funds, in increments of $1,000, and repays them on the last day of the month Repayments may be made amount available. The company also pays its vendors on the last day of the month It pays interest of t percent per month the last day of the month. To be prudent, the company desires to maintain a $30,000 cash cushion. Prepare a cash budge h. Prepare a pro forma income statement for the quarter L. Prepare a pro forma balance sheet at the end of the quarter j. Prepare a pro forma statement of cash flows for the quarter. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required cRequired D Required E Required F Required G Required Required I Requiredo Prepare a selling and administrative expenses budget. October November December Selling and Administrative Expense Budget Salary expense $ 18,000 S 18,000 $ 18,000 X Sales commissions 12,000 16,800 88 23,520 Supplies expense 6,000 8,400 11,760 Utilities 3,200 3,200 3,200 Depreciation on store fixtures 5,800 5,800 5,800 Rent 6,600 6,600 6,600 Miscellaneous 3,000 3,000 3,000 Total S&A expenses $ 54.600 $ 61.800 71.880 Use this information to prepare a selling and administrative expenses budget f. Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month i are incurred. Prepare a cash payments budget for selling and administrative expenses. g. Zachary borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per me the last day of the month To be prudent, the company desires to maintain a $30,000 cash cushion Prepare a cash bu h. Prepare a pro forma income statement for the quarter. i. Prepare a pro forma balance sheet at the end of the quarter. j. Prepare a pro forma statement of cash flows for the quarter * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required Required Required D Required Required F Required Required H Required! Required) Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses. December S October November Schedule of Cash Payments for SSA Expenses Salary expense S 18,000 $ 18,000 Sales commissions 12,000 Supplies exponse 6,000 8.400 Utilities 3,200 Depreciation on store fixtures Rent 6,600 6,600 Miscellaneous 3,000 3,000 Total payments for S&A expenses 5 33,600 $ 51,200 18,000 $ 16.800 11,760 3,200 6,600 3,000 59,360 S Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required e Required f Required Required H Required Required Zachary borrows funds, in increments of $1,000, and repays them on the last 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 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $30,000 cash cushion, Prepare a cash budget. (Any repayments should be indicated with a minus sign.) a Show less 3 S Cash Budget October November December Section 1: Cash Receipts Beginning cash balance $ OS 30,960 $ 30.000 Add Cash receipts 120,000 348,000 3 487,2003 Total cash available 120,000 378,960 517.200 Section 2 Cash Payments For Inventory purchases 143,640 245,016 310,548 For selling and administrative expenses 33,600 51,200 59.3603 Purchase of store foxtures 246,800 0 0 Interest expense 0 3.3503 2856 3 424040 299,566 372,764 Total budgeted disbursements Section 3: Financing Activities Surplus (shortage) Borrowing (repayment) Ending cash balance (304,040) 335,000 X 30,960 S 79,394 (49,394) 30,000 144,436 (114,436) 30,000 S S Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required cRequired Required E Required F Required Required H Required 1 Required Prepare a pro forma balance sheet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign.) ZACHARY COMPANY Pro Forma Balance Sheet December 31, Year 1 Assets 30,000 13,800 352,800 sole $ 246,800 (17.400) Cash Inventory Accounts recolvable Store fixtures Accumulated depreciation Book value of fixtures Total assets Liabilities Accounts payable Line of credit liability Sales commissions payable Utilities payable 229,400 S 626,000 olo 99,396 3 171,170 23,520 3,200 Equity Retained earnings 328,714 Total liabilities and equity $ 626,000 * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required c Required D Required E Required Required G Required H Required! Required) Prepare a pro forma statement of cash flows for the quarter. (Cash outflows should be indicated with a minus sign.) ZACHARY COMPANY Pro Foma Statement of Cash Flows For the Quarter Ended December 31, Year 1 Cash flows from operating activities Cash receipts from customers $ 955,200 Cash payments for selling and administrative expenses (144,160) Cash payments for inventory (699,204) Cash payments for interest expense (6,206) Net cash flows from operating activities Cash flows from investing activities Cash payment for store fixtures Cash flow from financing activities Not inflow from line of credit Net Increase in cash Plus Beginning cash balance Ending cash balance $ 105,630 (246,800) 171,170 30,000 $ 30,000