! Required information ATC 7-2 (Algo) Group Assignment Master budget and pro forma statements [The following information applies to the questions displayed below.) The following trial balance was drawn from the records of Walton Company as of October 1, year 2. $ 25,000 78,000 49,000 380,000 Cash Accounts receivable Inventory Store equipment Accumulated depreciation Accounts payable Line of credit loan Common stock Retained earnings Totals $ 80,400 81,000 280,000 68,000 22,600 $532,000 $532,000 ATC 7-2 (Algo) Part a Required a-1. Based on the following information, prepare a sales budget and a schedule of cash receipts for October, November, and December. Sales for October are expected to be $315,000, consisting of $58,000 in cash and $257,000 on credit. The company expects sales to increase at the rate of 10 percent per month. All accounts receivable are collected in the month following the sale. a-2. Based on the following information, prepare a purchases budget and a schedule of cash payments for inventory purchases for October, November, and December. The inventory balance as of October 1 was $49,000. Cost of goods sold for October is expected to be $81,000. Cost of goods sold is expected to increase by 10 percent per month. The company expects to maintain a minimum ending inventory equal to 20 percent of the current month cost of goods sold. Seventy-five percent of accounts payable is paid in the month that the purchase occurs; the remaining 25 percent is paid in the following month. a-3. Based on the following selling and administrative expenses budgeted for October, prepare a selling and administrative expenses budget for October, November, and December Sales commissions (10% increase per month) Supplies expense (10% increase per month) Utilities (fixed) Depreciation on store equipment (fixed) Salary expense (fixed) Rent (fixed) Miscellaneous (fixed) $ 8,700 1,900 4,000 2,100 43,000 7,800 1,700 Cash payments for sales commissions and utilities are made in the month following the one in which the expense is incurred. Supplies and other operating expenses are paid in cash in the month in which they are incurred. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req A3 Based on the following information, prepare a sales budget and a schedule of cash receipts for October, November, and December. Sales for October are expected to be $315,000, consisting of $58,000 in cash and $257,000 on credit. The company expects sales to increase at the rate of 10 percent per month. All accounts receivable are collected in the month following the sale. Show less A October November December Sales Budget Cash sales $ Sales on account 58,000 257,000 315,000 Total budgeted sales Schedule of Cash Receipts Cash sales Collections from accounts receivable Total cash collections Req A1 Req A2 Req A3 Based on the following information, prepare purchases budget and a schedule of cash payments for inventory purchases for October, November, and December. The inventory balance as of October 1 was $49,000. Cost of goods sold for October is expected to be $81,000. Cost of goods sold is expected to increase by 10 percent per month. The company expects to maintain a minimum ending inventory equal to 20 percent of the current month cost of goods sold. Seventy-five percent of accounts payable is paid in the month that the purchase occurs; the remaining 25 percent is paid in the following month. (Round your answers to the nearest whole dollar.) Show less A Inventory Purchases Budget October November December Inventory needed Required purchases (on account) Schedule of Cash Payments Payment of current months' accounts payable Payment for prior month's accounts payable Total budgeted payments for inventory Req A1 Reg A2 Req A3 Based on the following selling and administrative expenses budgeted for October, prepare a selling and administrative expenses budget for October, November, and December. October November December Sales commissions $ 8,700 Supplies expense Utilities Depreciation on store equipment Salary expense Rent 1,900 4,000 2,100 43,000 7,800 1,700 69,200 Miscellaneous Total S&A expenses $