1. Cash Budget

   Janet Wooster owns a retail store that sells new and used sporting equipment. Janet has requested a cash budget for October. After examining the records of the company, you find the following:

   1. Cash balance on October 1 is $1,130.
   2. Actual sales for August and September are as follows:

      		August		September
      Cash sales		$6,000		$4,500
      Credit sales		58,000		61,000
      Total sales		$64,000		$65,500

   3. Credit sales are collected over a three-month period: 40 percent in the month of sale, 36 percent in the next month, and 22 percent in the second month after the sale. The remaining sales are uncollectible.
   4. Inventory purchases average 70 percent of a months total sales. Of those purchases, 45 percent are paid for in the month of purchase. The remaining 55 percent are paid for in the following month.
   5. Salaries and wages total $3,850 per month.
   6. Rent is $3,150 per month.
   7. Taxes to be paid in October are $1,635.
   8. Janet usually withdraws $3,500 each month as her salary.
   9. Advertising is $1,500 per month.
   10. Other operating expenses total $3,800 per month.
   11. Internet and telephone fees are $340 per month.

   Janet tells you that she expects cash sales of $5,000 and credit sales of $64,000 for October. She likes to have $3,000 on hand at the end of the month and is concerned about the potential October ending balance.

   Required:

   Prepare a cash budget for October. Include supporting schedules for cash collections and cash payments. Round your intermediate computations and final answers to the nearest dollar.

   Wooster Sporting Goods Store Cash Budget For the Month of October

   Beginning cash balance	$fill in the blank 1
   Collections:
   Cash sales	fill in the blank 2
   Credit sales:
   October	fill in the blank 3
   September	fill in the blank 4
   August	fill in the blank 5
   Total cash available		$fill in the blank 6
   Disbursements:
   Inventory purchases:
   October	$fill in the blank 7
   September	fill in the blank 8
   Salaries and wages	fill in the blank 9
   Rent	fill in the blank 10
   Taxes	fill in the blank 11
   Other operating expenses	fill in the blank 12
   Owner withdrawal	fill in the blank 13
   Advertising	fill in the blank 14
   Internet and telephone	fill in the blank 15	fill in the blank 16
   Ending cash balance		$fill in the blank 17

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