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1.Welch Company, which expects to start operations on 1-1-2011, will sell digital cameras in shopping malls. Welch has budgeted sales as indicated in the following table. The company expects a 10% increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March.MAR???A. Complete the sales budgeting by filling in the missing amounts.B. Determine the amount of sales revenue Welch will report on its first quarter pro forma income statement2.Naftel Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Naftel’s policy is to maintain and ending inventory balance equal to 10 percent of the following month’s costs of goods sold. April’s budgeted cost of good sold is $75,000.Mar.$60,000????Required:A. Complete the inventory purchases budget by filling in the missing amounts.B. Determine the amount of cost of goods sold the company will report on its pro forma income statement.C. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.3.The accountant for Teresa’s Dress Shop prepared the following cash budget. Teresa desires to maintain a cash cushion of $14,000 at the end of each month. Funds are assumed to be borrowed and repaid on the last day of each month. Interest is charged at the rate of 2% per month.SEPsection 1: cash receipts$?240,600?section 2: cash payments174,15261,432??section 3: financing activities??$14,000Requireda. Complete the cash budget by filling in the missing amounts. Round all computations to the nearest whole dollar.b. Determine the amount of net cash flows from operating activities Teresa’s will report on the third quarter pro forma statement of cash flows.c. Determine the amount of net cash flows from financing activities Teresa’s will report on the third quarter pro forma statement of cash flows
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