a. & b.

Oct Nov Dec

Sales budget
Cash sales 180000 216000 259200
sales on account 220000 264000 316800
Total budgeted sales 400000 480000 576000

Schedule of cash receipts

Current cash sales 180000 216000 259200
Collectins from A/R 220000 264000
Total collections 180000 436000 523200

c&d
Oct Nov Dec

Budgeted sales 400000 480000 576000

Inventory purchases budget

Budgeted cost of goods sold(70% *sales) $ 280,000 $ 336,000 $ 403,200

Add:ending inventory(20%*next month COGS) $ 67,200 $ 80,640 $ 13,900
Inventory needed $ 347,200 $ 416,640 $ 417,100
Less:beginning inventory $ - $ (67,200) $ (80,640)
Required purchases on account $ 347,200 $ 349,440 $ 336,460

Schedule of cash payments budget for inventory purchases

Payment of current month's accounts payable(80%) $ 277,760 $ 279,552 $ 269,168
Payment of prior month's accounts payable(20%) $ 69,440 $ 69,888
total budgeted payments for inventory $ 277,760 $ 348,992 $ 339,056
e&f
Oct Nov Dec
Selling and admnistrative budget
salary expense 19900 19900 19900
sales commission(4% * sales) 16000 19200 23040
supplies expense(2% of sales) 8000 9600 11520
Utilties 3300 3300 3300
Depreciation on store fixtues 5900 5900 5900
rent 6700 6700 6700
Miscellaneous 3100 3100 3100
Total S&A expenses 62900 67700 73460

Schedule of cash payments for S & A expenses

salary expense 19900 19900 19900
sales commission 16000 19200
supplies expense 8000 9600 11520
Utilties 3300 3300
Depreciation on store fixtues(non cash)
rent 6700 6700 6700
Miscellaneous 3100 3100 3100
total payments for s& a expenses 37700 58600 63720

g.
Cash Budget
Oct Nov Dec
Beginning cash balance $ - $ 31,940 $ 31,000
Add:cash receipts $ 180,000 $ 436,000 $ 523,200
Cash Avaialable $ 180,000 $ 467,940 $ 554,200

Less:payments
for inventory purchases $ 277,760 $ 348,992 $ 339,056
for selling & admn expense $ 37,700 $ 58,600 $ 63,720
Purchase of store fixtures $ 180,600
for Interest expense $ 6,960 $ 6,512

Total budgeted payments $ 496,060 $ 414,552 $ 409,288

Payments munus receipts $ (316,060) $ 53,388 $ 144,912

Fianancing activities
Borrows(repayments) $ 348,000 $ (22,388)
Ending cash balance $ 31,940 $ 31,000 $ 144,912

interest
nov: on 348000 * 2%=6960
dec:(348000-22388)*2%=6512
 Cash flow statement
Cash flow form operating activities
cash payments for selling and administrative expenses $ 160,020
cash payments for interest expense $ 13,472
cash payment for inventory $ 965,808
cash receipts from customers $ 1,139,200
net cash flows from operating activities $ (100)
cash flows from investing activities
cash payments for store fixtures $ (180,600)
cash flow from financing activities
net increase in line of credit $ 325,612
net increase in cash $ 144,912
add:opening cash balance 0
closing cash balance $ 144,912
 Income Satement

Sales $ 1,456,000
Less:COGS(sales*70%) $ 1,019,200
Gross Profit $ 436,800
Less:expenses
S&A expenses $ 204,060
62900+67700+73460
EBIT $ 232,740
Interest epxense $ 13,472
Net Profit $ 219,268

Haas COMPANY
Pro Forma Balance Sheet
31-Dec-19
Assets
Cash $ 144,912
Inventory $ 13,900
Accounts receivable $ 316,800
Store fixtures $ 180,600
Less: Accumulated depreciation $ (17,700)
Book value of fixtures $ 162,900
Total assets $ 638,512
Liabilities
Accounts payable(20%*336460) $ 67,292
Utilities payable $ 3,300
Sales commissions payable $ 23,040
Line of credit liability(302000-40854) $ 325,612
$ 419,244
Equity
Retained earnings $ 219,268
$ 219,268
Total liabilities and equity $ 638,512