Question

Hass Company Part a $ 250,000 October sales Sales in cash Sales in accounts receivable Expected sales growth per month 40% 5% 100% Part b. Accounts receivable collected in month following sales Part c. Cost of goods sold as percentage of sales Ending inventory -percent of next 10% month's cost of goods sold December estimated ending inventory $12,000 Part d Accounts payable paid in month 70% of purchase Accounts payable paid in month 30 following purchase Part e. Salary expense (fixed) Sales commissions (percent of sales) Supplies expense (percent of sales) Utilities (fixed) Depreciation on store equipment (fixed) Rent (fixed) Miscellaneous (fixed) Cost of store fixtures Salvage value - store fixture:s Useful life (years) - store fixtures $18,000 5% 2% $ 1,400 4,000 4,800 1,200 164,000 20,000 3 Part g $1,000 Borrowing increments Monthly interest rate Cash cushion 1% $ 12,000

Answer 1

Solution:

First 4 parts of the question is solved here

a. Sales budget
HAAS COMPANY
Sales	October	November	December	Pro Forma
Cash Sales	$100,000	$108,000	$116,640
Sales on Account	$150,000	$162,000	$174,960
Total sales	$250,000	$270,000	$291,600	$811,600
b. Schedule of Cash Receipts
	October	November	December	Pro Forma
Current Cash Sales	$100,000	$108,000	$116,640
Plus Collection from AR		$150,000	$162,000
Total Collections	$100,000	$258,000	$278,640	$636,640
c. Inventory Purchases Budget
	October	November	December	Pro Forma
Budgeted Cost of Goods Sold (Total Sales * 60%)	$150,000	$162,000	$174,960
Plus Desired Ending Inventory	$16,200	$17,496	$12,000
Inventory Needed	$166,200	$179,496	$186,960
Less Beginning Inventory (ending inventory of previous month)	$15,000	$16,200	$17,496
Required Purchases (on Acc.)	$151,200	$163,296	$169,464	$483,960
d. Schedule of Cash Payments Budget for Inventory Purchases
	October	November	December	Pro Forma
Payment of Current Month's A/P	$105,840	$114,307	$118,625
Payment of Prior month's A/P		$45,360	$48,989
Total Budgeted Payments	$105,840	$159,667	$167,614	$433,121

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Pls ask separate question for remaining parts.