Please start by solving from Requirement 5, 6 and 7. Thanks!

Thrifty Dollar Store is a local discount store with the following information: EB (Click the icon to view the information.) Read the requirements October sales are projected to be $300,000 Sales are projected to increase by 15% in November and another 30% in December and then return to the October level in January 20% of sales are made in cash while the remaining 80% are paid by credit or debit cards The credit card companies and banks (debit card issuers) charge a 1% 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 * Requirement 1. Prepare the sales budget for November and December Thrifty Dollar Store Sales Budget For the Months of November and December The store's gross profit is 25% of its sales revenue .For the next several months, the store wants to maintain an ending merchandise November December inventory equal to $18,000 plus 20% of the next month's cost of goods sold. All purchases for merchandise are made on account and paid in the month following 69,000S 276,000 345,000 S 89,700 Cash sales Credit sales Total sales Requirement 2. Prepare the cost of goods sold, inventory, and purchases budget for November and December. the purchase. The September 30 inventory is expected to be $63,000 Expected monthly operating expenses and details about payments include the following . Wages of store workers should be $7,500 per month and are paid on the last day 358,800 of each month. Utilities expense is expected to be $800 per month in September, October, and November Utilities expense is expected to be $1,800 per month during the colder months of Thrifty Dollar Store Cost of Goods Sold, Inventory, and Purchases Budget For the Months of November and December December, January, and February All utility bills are paid the month after incurred. Property tax is $28,800 per year and is paid semiannually each December and November June 258,750 S Cost of goods sold Plus: Desired ending inventory Total inventory required Less: Beginning inventory 336,375 63,000 399,375 85,275 314.100 Property and liability insurance is $18,000 per year and is paid semiannually each January and July .Depreciation expense is $192,000 per year, the straight-line method used. * Transaction fees, as stated earlier, are 1% of credit and debit card sales. 85,275 44,025S 69,750 274,275 S .Cash dividends of $230,000 are to be paid in December Assume the cash balance on October 31 is $40,000. The company wants to maintain a cash balance of at least $40,000 at the end of every month. The company has arranged a line of credit with a local bank at a 3% interest rate There is no outstanding debt as of October 31 Requirement 3. Prepare the operating expense budget for November and December Thrifty Dollar Store Cash Payments for Operating Expenses Budget For the Months of November and December Requirements November December S 7,500 S7,500 1,800 2,400 1,500 16,000 Prepare the following budgets for November and Wage expense Utilities expense Property tax expense Property and liability insuranse expense Depreciation expense 800 2,400 1,500 16,000 1. 2. 3. 4. 5. 6. 7. Sales budget Cost of goods sold, inventory, and purchases budget Operating expense budget Budgeted income statement Cash collections budget Cash payments budget Combined cash budget Enter any number in the edit fields and then click Check Answer Thrifty Dollar Store is a local discount store with the following information: EB (Click the icon to view the information.) Read the requirements October sales are projected to be $300,000 Sales are projected to increase by 15% in November and another 30% in December and then return to the October level in January 20% of sales are made in cash while the remaining 80% are paid by credit or debit cards The credit card companies and banks (debit card issuers) charge a 1% 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 * Requirement 1. Prepare the sales budget for November and December Thrifty Dollar Store Sales Budget For the Months of November and December The store's gross profit is 25% of its sales revenue .For the next several months, the store wants to maintain an ending merchandise November December inventory equal to $18,000 plus 20% of the next month's cost of goods sold. All purchases for merchandise are made on account and paid in the month following 69,000S 276,000 345,000 S 89,700 Cash sales Credit sales Total sales Requirement 2. Prepare the cost of goods sold, inventory, and purchases budget for November and December. the purchase. The September 30 inventory is expected to be $63,000 Expected monthly operating expenses and details about payments include the following . Wages of store workers should be $7,500 per month and are paid on the last day 358,800 of each month. Utilities expense is expected to be $800 per month in September, October, and November Utilities expense is expected to be $1,800 per month during the colder months of Thrifty Dollar Store Cost of Goods Sold, Inventory, and Purchases Budget For the Months of November and December December, January, and February All utility bills are paid the month after incurred. Property tax is $28,800 per year and is paid semiannually each December and November June 258,750 S Cost of goods sold Plus: Desired ending inventory Total inventory required Less: Beginning inventory 336,375 63,000 399,375 85,275 314.100 Property and liability insurance is $18,000 per year and is paid semiannually each January and July .Depreciation expense is $192,000 per year, the straight-line method used. * Transaction fees, as stated earlier, are 1% of credit and debit card sales. 85,275 44,025S 69,750 274,275 S .Cash dividends of $230,000 are to be paid in December Assume the cash balance on October 31 is $40,000. The company wants to maintain a cash balance of at least $40,000 at the end of every month. The company has arranged a line of credit with a local bank at a 3% interest rate There is no outstanding debt as of October 31 Requirement 3. Prepare the operating expense budget for November and December Thrifty Dollar Store Cash Payments for Operating Expenses Budget For the Months of November and December Requirements November December S 7,500 S7,500 1,800 2,400 1,500 16,000 Prepare the following budgets for November and Wage expense Utilities expense Property tax expense Property and liability insuranse expense Depreciation expense 800 2,400 1,500 16,000 1. 2. 3. 4. 5. 6. 7. Sales budget Cost of goods sold, inventory, and purchases budget Operating expense budget Budgeted income statement Cash collections budget Cash payments budget Combined cash budget Enter any number in the edit fields and then click Check