I need help figuring out E, F, and G Required information Problem 14-23 Preparin

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I need help figuring out E, F, and G

Required information Problem 14-23 Preparing a master budget for retail company with no beginning account balances LO 14-2, 14-3, 14-4, 14-5, 14-6 The following information applies to the questions displayed belowJ Munoz Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2019. 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: Problem 14-23 Part 1 Required a. October sales are estimated to be $400,000, of which 45 percent will be cash and 55 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales 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 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $13,900. Assume that all purchases are made on account. Prepare an inventory purchases budget. d. The company pays 80 percent of accounts payable in the month of purchase and the remaining 20 percent in the following month. Prepare a cash payments budget for inventory purchases. e. Budgeted selling and administrative expenses per month follow Salary expense (fixed) Sales cammissions Supplies expense Utilities (fixed) Depreciation on store fixtures (fixed)* Rent (fixed) Miscellaneous (fixed) $19,900 4% of Sales 2% of Sales $ 3,300 $ 5,900 $ 6,700 $ 3,100

Explanation / Answer

Selling and administrative Budget: October November december Salary Expense 19900 19900 19900 Sales Commissions (4% of Sale) 16000 19200 23040 Supplies Expense (2% of sale) 8000 9600 11520 Utilities 3300 3300 3300 Dep on Store Furniture 5900 5900 5900 Rent 6700 6700 6700 Miscellaneous 3100 3100 3100 Total 62900 67700 73460 Schedule of Cash payment for SandA: October November december Salary Expense 19900 19900 19900 Sales Commissions (4% of Sale) 16000 19200 Since No Sept Sale so no commission to be paid in Oct Supplies Expense (2% of sale) 8000 9600 11520 Utilities 3300 3300 Dep on Store Furniture (No Cash Outgo) Since No Sept Sale so no utility to be paid in Oct Rent 6700 6700 6700 Miscellaneous 3100 3100 3100 Total 37700 58600 63720 Cash Budget: October November december Opening 31262 31125 Cash Available 180000 436000 523200 Cash Payment -Purchase 80% in same Month 277760 279552 269168 -Purchase 20% in Next Month 69440 69888 Salary Expense 19900 19900 19900 Sales Commissions (4% of Sale) 16000 19200 Supplies Expense (2% of sale) 8000 9600 11520 Utilities 3300 3300 Rent 6700 6700 6700 Miscellaneous 3100 3100 3100 Total Budgeted Payment 315460 407592 402776 Excess cash(Deficit) -135460 28408 120424 Borrowing (135460+31000 Min Bal) 167000 3000 -89141 (120424-89141-283 int) Interest Payment 2% for month 278 283 283 Cash Balance 31262 31125 31000 Min Balance

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