Need help processing assignment....Thanks

Need help processing assignment....Thanks

a. b. Problem 8.37 Cash Budget, Pro Forma Balance Sheet Bernard Creighton is the controller for Creighton Hardware Store. In putting together the cash budget for the fourth quarter of the year, he has assembled the following data. Sales d. e. Each month, 20 percent of sales are for cash, and 80 percent are on credit. The collection pattern for credit sales is 20 percent in the month of sale, 50 percent in the following month, and 30 percent in the second month following the sale. Each month, the ending inventory exactly equals 40 percent of the cost of next month's sales. The markup on goods is 33.33 percent of cost. Inventory purchases are paid for in the month following purchase. Recurring monthly expenses are as follows: f. g. h. Property taxes of $15,000 are due and payable on September 15. Advertising fees of $6,000 must be paid on October 20. A lease on a new storage facility is scheduled to begin on November 2. Monthly payments are c. $5,000. i. j. The company has a policy to maintain a minimum cash balance of $10,000. If necessary, it will borrow to meet its short-term needs. All borrowing is done at the beginning of the month. All payments on principal and interest are made at the end of the month. The annual interest rate is 9 percent. The company must borrow in multiples of $1,000. A partially completed balance sheet as of August 31 is given below. (Accounts payable is for inventory purchases only.) 1. Complete the balance sheet given in part (j). Creighton Hardware Store Balance Sheet August 31 Lia bili tie s& Ow ner s' Eq uit y As set s Cash $ Accounts receivable Inventory Plant and equipment 431,750 Accounts payable $ Common stock Retained earnings Totals 220,000 268,750 $ $ Hide 2. Bernard wants to see how the company is doing prior to starting the month of December. Prepare a cash budget for the months of September, October, and November and for the three-month period in total (the period begins on September 1). Enter repayments, interest, cash deficiencies and negative total financing as negative amounts. If amount is zero, enter "0". Creighton Hardware Store Cash Budget For the Period Ending November 30 Beginning cash balance Se pte mb er Oc tob er No ve mb er Tot al $ $ $ $ $ $ $ $ Cash collections Total cash available Hide Complete a supporting schedule of cash collections. Creighton Hardware Store Cash collections For the Period Ending November 30 Cash sales Se pte mb er Oc tob er No ve mb er Tot al $ $ $ $ $ $ $ $ Credit sales: Current month Prior month From two months ago Total collections Hide 3. Prepare a pro forma balance sheet as of November 30. Creighton Hardware Store Pro Forma Balance Sheet November 30 Assets: $ Liabilities: $ Owners' Equity: Totals $ $