10 part question

Budgeted cash disbursements for merchandise purchases for October Prepare the budgeted net operating income for October. Budgeted cash collections for October Prepare the budgeted merchandise purchases for Jctober. Required: 1. Using the information provided, calculate or prepare the following: a. The budgeted cash collections for October. b. The budgeted merchandise purchases for October. c. The budgeted cash disbursements for merchandise purchases for October. d. The budgeted net operating income for October. e. A budgeted balance sheet at October 31. 2. Assume the following changes to the underlying budgeting assumptions: (1) 50% of a month's credit sales are collected in the month the sales are made and the remaining 50% is collected in the following month, (2) the ending merchandise inventory is always 10% of the following month's cost of goods sold, and (3) 20% of all purchases are paid for in the month of purchase and 80% are paid for in the following month. Using these new assumptions, calculate or prepare. the following: a. The budgeted cash collections for October. b. The budgeted merchandise purchases for October. c. The budgeted cash disbursements for merchandise purchases for October. d. Net operating income for the month of October. e. A budgeted balance sheet ot October 31. Complete this question by entering your answers in the tabs below. Prepare the budgeted cash collections for October. Prepare the budgeted cash disbursements for merchandise purchases for October. Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted ot $600,000 for October and $610,000 for November. Of these sales, 35% will be for cash; the remainder will be credit sales. Forty percent of a month's credit sales are collected in the month the sales are made, and the remaining 60% is collected in the following month. All of the September 30 occounts recelvable will be collected in October. 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following month's cost of goods sold. month's cost of goods sold. 3. All merchandise purchases are on account. Thirty percent of all purchases are paid for in the month of purchase and 70% are paid for in the following month. All of the September 30 accounts payabie to suppliers will be paid during Octobet. 4. Solting and administrative expenses for October are budgeted at $81,200, exclusive of depreciation. These expenses will be paid in Req 2D Req 2E \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ Wheeling Company } \\ \hline \multicolumn{2}{|c|}{ Balance Sheet } \\ \hline \multicolumn{1}{|c|}{ October 31 } & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline Total assets & \\ \hline Liabilities and Stockholders' Equity & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular} Req 1D Req 2A