Chec 4 Wheeling Company is a merchandiser that provided balance sheet as of September 30 as shown below: Wheeling Company Balance Sheet 5 points September 30 Assets Sklpped $70,800 Cash Accounts receivable 130,000 Inventory Buildings and equipment, net of depreciation 59,400 276,000 eBook $536,200 Total assets Liabilities and Stockholders' Equity Accounts payable Common stock 172,200 216,000 148,000 $536,200 Print Retained earnings Total liabilities and stockholders' equity References The company is in the process of preparing a budget for October and has assembled the following data: Sales are budgeted at $440,000 for October and $450,000 for November. Of these sales, 35% will be for cash; the remainder will be credit sales. Forty percent of a month's credit sales are collected in the month the sales are made, and the remaining 60% is collected in the following month. All of the September 30 accounts receivable will be collected in October 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise inventory is always 30% of the following month's cost of goods sold. 3. All merchand ise purchases are on account. Thirty percent of all purchases are paid for in the month of purchase and 70% are paid for in the following month. All of the September 30 accounts payable to suppliers will be paid during October. 4. Selling and administrative expenses for October are budgeted at $89,400, exclusive of depreciation. These expenses will be paid cash. Depreciation is budgeted at $2,760 for the month. Required: 1. Using the information provided, calculate or prepare the following: a. The budgeted cash collections for October b. The budgeted merchandise purchases for October. c. The budgeted cash disbursements for merchandise purchases for October. d. The budgeted net operating income for October. e. A budgeted balance sheet at October 31. 2. Assume the following changes to the underlying budgeting assumptions: (1) 50% of a month's credit sales are collected in the month the sales are made and the remaining 50% is collected in the following month, (2) the ending merchandise inventory is always 10% of the following month's cost of goods sold, and (3) 20% of all purchases are paid for in the month of purchase and 80% are paid for in the following month. Using these new assumptions, calculate or prepare the following: a. The budgeted cash collections for October. b. The budgeted merc c. The budgeted cash disbursements for merchandise purchases for October d. Net operating income for the month of October e. A budgeted balance sheet at October 31. ndise purchases for er