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 Cash balance on October 1 is $1,120 Actual sales for August and September are as follows August September Cash sales $6,000 $4,500 Credit sales 58,000 62,000 Total sales $64,000 $66,500 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 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 Salaries and wages total $3,850 per month Rent is $3,150 per month Taxes to be paid in October are $1,635 Janet usually withdraws $3,500 each month as her salary Advertising is $1,500 per month Other operating expenses total $3,800 per month Internet and telephone fees are $320 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 $ blank Collections blank Cash sales blank Credit sales blank October blank September blank August blank Total cash available blank $ Disbursements blank blank Inventory purchases blank blank October $ blank September blank Salaries and wages blank Rent blank Taxes blank Other operating expenses blank Owner withdrawal blank Advertising blank Internet and telephone Ending cash balance blank $

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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

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:

Cash balance on October 1 is $1,120.
Actual sales for August and September are as follows:

August September

Cash sales $6,000 $4,500

Credit sales 58,000 62,000

Total sales $64,000 $66,500
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.
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.
Salaries and wages total $3,850 per month.
Rent is $3,150 per month.
Taxes to be paid in October are $1,635.
Janet usually withdraws $3,500 each month as her salary.
Advertising is $1,500 per month.
Other operating expenses total $3,800 per month.
Internet and telephone fees are $320 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	$	blank
Collections:		blank
Cash sales		blank
Credit sales:		blank
October		blank
September		blank
August		blank
Total cash available	blank	$
Disbursements:	blank	blank
Inventory purchases:	blank	blank
October	$	blank
September		blank
Salaries and wages		blank
Rent		blank
Taxes		blank
Other operating expenses		blank
Owner withdrawal		blank
Advertising		blank
Internet and telephone
Ending cash balance	blank	$