Thornton Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, year 1. 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.October sales are estimated to be $400,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 30 percent per month. Prepare a sales budget.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.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 $13,500. Assume that all purchases are made on account. Prepare an inventory purchases budget.The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. Prepare a cash payments budget for inventory purchases.Budgeted selling and administrative expenses per month follow.Salary expense (fixed) $ 19,500 Sales commissions 4 % of SalesSupplies expense 2 % of SalesUtilities (fixed) $ 2,900 Depreciation on store fixtures (fixed)* $ 5,500 Rent (fixed) $ 6,300 Miscellaneous (fixed) $ 2,700 *The capital expenditures budget indicates that Thornton will spend $167,000 on October 1 for store fixtures, which are expected to have a $35,000 salvage value and a two-year (24-month) useful life.Use this information to prepare a selling and administrative expenses budget.Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses.Thornton borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays its vendors on the last day of the month. It pays interest of 2 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $27,000 cash cushion. Prepare a cash budget.Prepare a pro forma income statement for the quarter.Prepare a pro forma balance sheet at the end of the quarter.Prepare a pro forma statement of cash flows for the quarter.

In this module, we focus on the concept of conversion, which is the actual monetizing of the fraudulent activity of the perpetrator. Please read the following scenario:Your boss has presented you with a fraud case which occurred at a manufacturing plant of a major auto supplier. In this case, circumstantial evidence has been collected that indicates the plant manager has been incorrectly booking revenues and costs to increase the performance level of the plant, and thus increase the bonus payout for himself and the remainder of the plant leadership team.You have been asked to employ the net worth method to provide evidence to support these claims. Available information includes the financial statements of the facility for the past five years and access to base activity information (invoices, etc.) to support the financial statements. Note: this information is not provided, you will develop your plan based on knowing the information is available.How would you go about this investigation and why?What key information would you request to support the analysis and why?What specific steps would you take to identify the fraud and why? Integrate the specific Internet search tips in your answer