Gessel Co.'s projected sales are as follows:

Gessel estimates that it will collect 30% in the month of sale, 50% in the month after the sale,and 18% in the second month following the sale. Two percent of all sales are estimated to be bad debts. Gessel's purchases on account totaling $130,000 during August, $140,000 during September, and $100,000 during October. Gessel pays 25% of purchases in the month purchased and 75% in the following month.
A. How much is Gessel Co.'s budgeted cash receipts for October?
B. How much is the net increase or decrease in cash for Gessel for October?

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$160,000 September August $180,000 October $220,0 November $200,000 00