Budgeting Cash Flow The following various elements relate to Murphy, Inc.'s cash budget for October of the current year. For each item, determine the amount of cash that Murphy should receive or pay in October.

a. At $28 each, unit sales are 10,000 and 12,000 for September and October, respectively. Total sales are typically 30% for cash and 70% on credit; 40% of credit sales are collected in the month of sale, with the balance collected in the following month. Uncollectible accounts are negligible.

September sales	Answer
October cash sales	Answer
October credit sales	Answer
Cash collected in October	Answer

b. Merchandise purchases were $47,000 and $80,000 for September and October, respectively. Typically, 20% of total purchases are paid for in the month of purchase with a 5% cash discount. The balance of purchases is paid for (without discount) in the following month.

September purchases	Answer
October purchases	Answer
Cash paid in October	Answer

c. Fixed administrative expenses, which total $19,000 per month, are paid in the month incurred. Variable administrative expenses amount to 20% of total monthly sales revenue, 65% of which is paid in the month incurred, with the balance paid in the following month.

October fixed expenses	Answer
September variable expenses	Answer
October variables expenses	Answer
Cash paid in October	Answer

d. Fixed selling expenses, which total $4,200 per month, are paid in the month incurred. Variable selling expenses, which are 5% of total sales revenue, are paid in the month following their incurrence.

October fixed expenses	Answer
September variable expenses	Answer
Cash paid in October	Answer