1.Yvon Inc uses accrual accounting.Its balance sheet as of the end of the third quarter of the calendar year 200B is shown below:

Yvon Inc

Balance Sheet

September 30,200B

Assets

Cash416,000

Accounts Receivable net1,200,000

Merchandise Inventory2,520,000

Non-current assets8,000,000

Total12,136,000

Liabilities and Equity

Accounts Payable1,400,000

Capital Stock7,200,000

Retained Earnings7,536,000

Total12,136,000

Additional Information:

Budgeted sales for October is 4,160,000;November 4,000,000

Gross Profit rate is 20%

Of the total sales 40% is on credit which the company collects in the month following the month of sale

Purchases in each month are composed of

80% coming month's requirement

20% current month's requirement

Purchases are paid for in the month following the month of purchase

Requirement:

1.What is the budgeted cash collections for the month of October?

2.What is the Budgeted purchases during October?

3.What is the budgeted gross profit for the month of October?