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: 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 60,000 62,000 Total sales $66,000 $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 1. 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 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 980 Collections: Cash sales 5.2007 Credit sales: October 28,350 September 22,320 August 10,880 X Total cash available $1 67,730 X Total cash available 67,730 X Disbursements: Inventory purchases: October 19,096 September 28,056 Salaries and wages 4,000 Rent 3,150 Taxes 1,635 Other operating expenses 3,700 Owner withdrawal 3,500 Advertising 1,500 Internet and telephone 320 64,957 Ending cash balance 2,773 X Feedback Check My Work The cash budget begins with the beginning cash balance. Add all cash receipts. Subtract all cash disbursements. Calculate the ending cash balance. Explain how each of the four data analytic types-descriptive, diagnostic, predictive, or prescriptive-can be used in LeeAnn's budgeting process. (See Exhibits 2.5 and 2.6, pp. 37, 40, for a review of data analytic types.) The cash budget is used both descriptively and predictively to describe what is expected given LeeAnn's assumptions