0 10:39 AM 8-8B -Cash Budget, Income Statement, Balance Sheet Noskova Company manufactures boomerangs. The company's September 30 balance sheet follows Noskova Company Balance Sheet September 30 ASSETS Cash Accounts receivable, net Inventory Property, plant and equipment, net Total assets S 50,000 125,000 225,000 500,000 $900,000 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable, net Bank loan payable Common shares Retained earnings Total liabilities and shareholders S 200,000 250,000 50,000 400,000 The company shows the following budget items for October: a) Sales are expected to be $600,000 in October. 70% are expected to be collected in October, 30% will be collected in November b.) The full $125,000 of accounts receivable on the September 30 balance sheet (above) is expected to be collected in October c) Cost of goods sold is expected to be 40% of sales. d.) The company plans to purchase $300,000 in inventory during October. The company's purchases are all on account. Of the company's purchases, 25% are paid in the month of the purchase, and 75% are paid in the following month. e.) The full $200,000 of accounts payable on the September 30 balance sheet (above) is expected to be paid off in October f.) The company's operating expenses are expected to be $250,000 including depreciation of 20,000. All operating expenses except depreciation are cash expenses. g.) The company's bank loan will be paid in full with $10,000 interest. h.) New equipment costing $50,000 will be purchased for cash. i.) The company wishes to keep a minimum cash balance of $20,000 and has access to borrow up to $500,000 from a local bank. Required a.) Compute the expected cash collections for October b.) Compute the expected cash disbursements for October c.) Based on your answers for part a.) and b.), prepare a cash budget for October d.) Prepare a budgeted income statement for October e.) Prepare a balance sheet dated October 31