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AI Dente's cash balance on October 1 is $2,500. It has provided the following information for the month of October: • Sales are budgeted to be $157,000 in October. September sales were $181,500. 85% of sales are collected in the month of sale; the remainder are credit. Credit sales are collected in the month following sale. • Food and supply purchases are expected to be $120,000 in October. Food and supply purchases in September were $150,000. Al Dente's pays 25% in the month of purchase, and 75% in the month following. • Other cash disbursements include the following: Salaries of $9,200, Utilities of $4,950, Rent of $3,600, and Insurance of $1,200. Other expenses are paid in the month incurred. • Depreciation for the month is budgeted to be $900. • Al Dente's would like to maintain a minimum cash balance of $2,500. Borrowings, if needed, are made in $1,000 increments at 1% interest per month. What are total budgeted cash collections from sales for October?

AI Dente's cash balance on October 1 is $2,500. It has provided the following information for the month of October: • Sales are budgeted to be $157,000 in October. September sales were $181,500. 85% of sales are collected in the month of sale; the remainder are credit. Credit sales are collected in the month following sale. • Food and supply purchases are expected to be $120,000 in October. Food and supply purchases in September were $150,000. Al Dente's pays 25% in the month of purchase, and 75% in the month following. • Other cash disbursements include the following: Salaries of $9,200, Utilities of $4,950, Rent of $3,600, and Insurance of $1,200. Other expenses are paid in the month incurred. • Depreciation for the month is budgeted to be $900. • Al Dente's would like to maintain a minimum cash balance of $2,500. Borrowings, if needed, are made in $1,000 increments at 1% interest per month. What are total budgeted cash collections from sales for October?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Al Dente's cash balance on October 1 is $2,500. It has provided the following information for the month of October: • Sales are budgeted to be $157,000 in October. September sales were $181,500. 85% of sales are collected in the month of sale; the remainder are credit. Credit sales are collected in the month following sale. • Food and supply purchases are expected to be $120,000 in October. Food and supply purchases in September were $150,000. Al Dente's pays 25% in the month of purchase, and 75% in the month following. • Other cash disbursements include the following: Salaries of $9,200, Utilities of $4,950, Rent of $3,600, and Insurance of $1,200. Other expenses are paid in the month incurred. • Depreciation for the month is budgeted to be $900. • AI Dente's would like to maintain a minimum cash balance of $2,500. Borrowings, if needed, are made in $1,000 increments at 1% interest per month, What are total budgeted cash collections from sales for October?
Transcribed Image Text:Al Dente's cash balance on October 1 is $2,500. It has provided the following information for the month of October: • Sales are budgeted to be $157,000 in October. September sales were $181,500. 85% of sales are collected in the month of sale; the remainder are credit. Credit sales are collected in the month following sale. • Food and supply purchases are expected to be $120,000 in October. Food and supply purchases in September were $150,000. Al Dente's pays 25% in the month of purchase, and 75% in the month following. • Other cash disbursements include the following: Salaries of $9,200, Utilities of $4,950, Rent of $3,600, and Insurance of $1,200. Other expenses are paid in the month incurred. • Depreciation for the month is budgeted to be $900. • AI Dente's would like to maintain a minimum cash balance of $2,500. Borrowings, if needed, are made in $1,000 increments at 1% interest per month, What are total budgeted cash collections from sales for October?
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