5 Exercise 8-17 Cash Flows; Budgeted Income Statement and Balance Sheet [LO8-2, LO8-3, LOB-4, LO8-9 LO8-10] 10 Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below s 72,200 %2,000 81,000 255,000 $ 570,200 Cash Accounts receivable Buildings and equipment, net of depreciation Liabilities and Stockholders' Equity tory s 238,700 216,000 115,500 $570,200 Accounts payable Retained earnings Total liabilities and stockholders' equity The company is in the process of preparing a budget for October and has assembled the following data 1. Sales are budgeted at $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 accounts receivable will be collected in October. month's cost of goods sold for in the following month. All of the September 30 accounts payable to suppliers will be paid during October cash. Depreciation is budgeted at $2,550 for the month 2 The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following 3. All merchandise purchases are on account. Thirty percent of all purchases are paid for in the month of purchase and 70% are paid 4. Selling and administrative expenses for October are budgeted at $81,200, exclusive of depreciation. These expenses will be paid in 2. Assume the following changes to the underlying budgeting assumptions 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 prepar 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 at October 31 Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below Reg 1A Re 1sR 2Aeg 82eg 20 g 2 Req 18 Req 1C Req 1D Req 1E Prepare the budgeted cash collections for October. Assume that 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. Show less A Budgeted cash coll Req 2B Req 1E in the following month, (2) the ending merchandise inventory is always 10% of the and 80% are paid for in the following month. month's cost of goods sold, and (3) 20% of all purchases are paid for in the month of purchase Show lessA Req 2C X Req 2A Complete this question by entering your answers in the tabs below Req 1A Req 18 Req C Rq D Req 1EReq 2A Req 28 Prepare the budgeted cash disbursements for merchandise purchases for October Assume that 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 of goods sold, and 3 20% of all purchases are paid for in merchandise inventory is always 10% of the following month's cost the month of purchase and 80% are paid for in the following month. Show less A Req 2D > Req 28 Complete this question by entering your answers in the tabs below Prepare the net operating income for the month of October. Assum 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. e that 50% of a month's credit sales are collected in the Show less for net Req 2E> K Req 2c RIAL HOMEWORK I Quiz 8 2A Re RqReq 2DReq 2E Req CReq Reg 1A Req 1 Prepare a budgeted balance sheet at October 31, Assume that 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 are paid for in the following month. all purchases are paid for in the month of purchase and 80% Show lessA Wheeling Company Balance Sheet October 31 Assets Total assets Liabilities and Stockholders' Equity Ttal liabilities and stockholders' equity 01 - C Req 2D