Brief Exercise 9-46 Preparing a Cash Budget Oliver's Bistro provided the following information for the month of October: 2 a. Sales are budgeted to be $395,000. About 80% ofsales is cash; the remainder is on account. b. Oliver's Bistro expects that, on average, 70% ofcredit sales will be paid in the month of sale, and 28% will be paid in the following month. c. Food and supplies purchases, all on account, are expected to be $285,000. Oliver pays 35% in the month ofpurchase and 65% in the month following purchase. d. Most of the work is done by Oliver and his wife, who typically withdraw $18.500 a month from the business as their salary. (Note: The $18,500 is a payment in toral to the two owners, not per person,) Various part-time workers cost $29,.300 per month They are paid for their work weekly, so on average 90% of their wages is paid in the month incurred and the remaining 10% in the next month. e. Urilities and insurance average $8,750 per month. Rent on the buildingis $14,000 per month. f. In September, a freezer had to be replaced for $39,000. That amountis due in total in October. B. Septe mber sales were $390,000, and purchases of food and supplies in September equaled $275,000. h. The cash balance on October 1 is $1,916. Required: 1. Calculate the cash receipts expected in October. (Hint: Remember to include both cash sales and payments from credit sales.) 2. Calculate the cash needed in October to pay for food purchase. 3. Prepare a cash budget for the month of October