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 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 month's 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. LeeAnn 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 $320 per month.

LeeAnn 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	$____
Collections:
Cash sales	____
Credit sales:
October	___
September	___
August	___
Total cash available		$____
Disbursements:
Inventory purchases:
October	$___
September	___
Salaries and wages	___
Rent	___
Taxes	___
Other operating expenses	___
Owner withdrawal	___
Advertising	___
Internet and telephone	___	___
Ending cash balance		$___