Cash BudgetJanet 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:AugustSeptemberCash sales$6,000$4,500Credit sales58,00062,000Total sales$64,000$66,500c. Credit sales are collected over a three-month period: 40 percent in the month of sale, 36 percent in the next month, and 22percent 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 ofpurchase. The remaining 55 percent are paid for in the followinge. 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 atthe 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 yourintermediate computations and final answers to the nearest dollar.Wooster Sporting Goods StoreCash BudgetFor the Month of OctoberBeginning cash balanceCollections:Check My Work 10 more Check My Work uses remaining.PreviousNext Required:Prepare a cash budget for October. Include supporting schedules for cash collections and cash payments. Round yourintermediate computations and final answers to the nearest dollar.Wooster Sporting Goods StoreCash BudgetFor the Month of OctoberBeginning cash balanceCollections:Cash salesCredit sales:OctoberSeptemberAugustTotal cash availableDisbursements:Inventory purchases:OctoberSeptemberSalaries and wagesRentTaxesOther operating expensesOwner withdrawalAdvertisingInternet and telephoneEnding cash balanceCheck My Work 10 more Check My Work uses remaining.PreviousNext

Cash budget is one of the important type of budget being prepared in business. It shows expected…

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

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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