Required: Prepare a cash budget for October. Include supporting schedules for cash collections and cash payments. Round your intermediate computations and final answers to the nearest dollar. Wooster Sporting Goods Store Cash Budget For the Month of October Beginning cash balance Collections: Cash sales Credit sales: October September August Total cash available
Required: Prepare a cash budget for October. Include supporting schedules for cash collections and cash payments. Round your intermediate computations and final answers to the nearest dollar. Wooster Sporting Goods Store Cash Budget For the Month of October Beginning cash balance Collections: Cash sales Credit sales: October September August Total cash available
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Cash Budget
Janet Wooster owns a retail store that sells new and used sporting equipment. Janet has requested a cash budget for October.
After examining the records of the company, you find the following:
a. Cash balance on October 1 is $1,120.
b. Actual sales for August and September are as follows:
August
September
Cash sales
$6,000
$4,500
Credit sales
58,000
62,000
Total sales
$64,000
$66,500
c. Credit sales are collected over a three-month period: 40 percent in the month of sale, 36 percent in the next month, and 22
percent in the second month after the sale. The remaining sales are uncollectible.
d. Inventory purchases average 70 percent of a month's total sales. Of those purchases, 45 percent are paid for in the month of
purchase. The remaining 55 percent are paid for in the following
e. Salaries and wages total $3,850 per month.
f. Rent is $3,150 per month.
g. Taxes to be paid in October are $1,635.
h. Janet usually withdraws $3,500 each month as her salary.
i. Advertising is $1,500 per month.
j. Other operating expenses total $3,800 per month.
k. Internet and telephone fees are $320 per month.
onth.
Janet tells you that she expects cash sales of $5,000 and credit sales of $64,000 for October. She likes to have $3,000 on hand at
the end of the month and is concerned about the potential October ending balance.
Required:
Prepare a cash budget for October. Include supporting schedules for cash collections and cash payments. Round your
intermediate computations and final answers to the nearest dollar.
Wooster Sporting Goods Store
Cash Budget
For the Month of October
Beginning cash balance
Collections:
Check My Work 10 more Check My Work uses remaining.
Previous
Next

Transcribed Image Text:Required:
Prepare a cash budget for October. Include supporting schedules for cash collections and cash payments. Round your
intermediate computations and final answers to the nearest dollar.
Wooster Sporting Goods Store
Cash Budget
For the Month of October
Beginning cash balance
Collections:
Cash sales
Credit sales:
October
September
August
Total cash available
Disbursements:
Inventory purchases:
October
September
Salaries and wages
Rent
Taxes
Other operating expenses
Owner withdrawal
Advertising
Internet and telephone
Ending cash balance
Check My Work 10 more Check My Work uses remaining.
Previous
Next
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