Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $60,200 110,000 45,900 217,000 $433,100 $88,100 216,000 129,000 $433.100 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $340,000 for October and $350,000 for November. Of these sales, 35% will be for cash, the remainder will be credit sales. 40% 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 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 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 payable to suppliers will be paid during October 4. Selling and administrative expenses for October are budgeted at $83,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted an 52,170 for the month Required: Using the information provided, 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. it oncretion incorae for October Question Completion Statur 12 3 4 September 30 Avien Cash 560,200 Accounts receivable 110,000 Inventory 45,900 Buildings and equit, not of degeccution 217,000 Total assets $433.106 Liabilities and Stockholders' Equity Accents payable $1,100 Common stock 216,000 Retained earnings 129 600 Total liabilities and stockholders' equity $433.300 The company is in the process of preparing a budget for October and has assnesbled the following da 1. Sales are budgeted at $340,000 for October and $350,000 for November. Of these sales, 35% will be for cash, the under will be codit les 10% of a th's credit sales are collected in the month the sales are made, and the remaining 60% is collected is the following mouth All of the September 30 accesats enivable will be collected in Ober 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following meth's cet af goods sold 3. All merchandise purchases are on account. Thirty percent of all purchases are paid for in the oe of purchase and 70% are paid fue in the following no All of the September 30 accounts payable to suppliers will be paid during Osober 4.Selling and adesinistrative expenses for October are budgeted at $83,000, esclusive of depreciation. These expenses will be paid in cal Depesciation as budgeted at 12.170 for the month Required: Using the information provided, prepare the following a The budgeted cash collections for October b. The budgeted merchandise purchases for October The budgeted cash disbursements for merchandise purchases for October d. The budgeted net operating income for October SUPRA Assets Cash Accounts receivable Inventory Balance Sheet September 30 $60.200 110,000 45,900 217,000 S433,100 Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $88,100 216,000 129,000 $433,100 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $340,000 for October and $350,000 for November Of these sales, 35% will be for cash; the remainder will be credit sales. 40% 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 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following tooth'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 payable to suppliers will be paid during October 4. Selling and administrative expenses for October are budgeted at $83,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,170 for the month Required: Using the information provided, 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 SUPRA