Cash Budget LeeAnn Ortiz owns a retail store that sells new and used sporting equipment. LeeAnn has requested a cash budget for October. After examining t records of the company, you find the following: a. Cash balance on October 1 is $980. b. Actual sales for August and September are as follows: August September Cash sales $6,000 $4,800 Credit sales Total sales 68,000 $66,000 62,000 $66,800 c. Credit sales are collected over a three-month period: 45 percent in the month of sale, 36 percent in the next month, and 16 percent in the second month after the sale. The remaining sales are uncollectible. d. Inventory purchases average 70 percent of a month's total sales. Of those purchases, 40 percent are paid for in the month of purchase. The remaining 60 percent are paid for in the following month. e. Salaries and wages total $4,000 per month. f. Rent is $3,150 per month. g. Taxes to be paid in October are $1,635. h. LeeAnn usually withdraws $3,500 each month as her salary. i. Advertising is $1,500 per month. j. Other operating expenses total $3,700 per month. k. Internet and telephone fees are $320 per month. LeeAnn tells you that she expects cash sales of $5,200 and credit sales of $63,000 for October. She likes to have $3,000 on hand at the end of month and is concerned about the potential October ending balance.