DM Paper Company Balance Sheet September 30, 2021 ASSETS Cash 50,000 Accounts Receivable 250,000 Inventory 400,000 Total Current Assets $700,000 PP &E (net) $300,000 Total Assets $ 1,000,000 LIABILITIES AND STOCKHOLDER'S EQUITY Accounts Payable 150,000 Wages Payable 5,000 Total Current Liabilities $155,000 LT Note Payable $400,000 Common Stock $195,000 Retained Earnings $250,000 Total Liabilities and SE $ 1,000,000 The following activity is expected during the month of October: a. Sales for the Month of October are expected to be $850,000. Total cash sales for the month are expected to be $150,000 with remainder being credit sales. Cash for credit sales is received 60% in the month with 40% received the following month. All beginning balances in AR will be received in the month. b. Inventory purchases are expected to be $400,000. All purchases are on account with 75% of the purchase being paid in the month, and 25% paid the following month. Ending Inventory is expected to be $325,000. Beginning balance in AP will be paid in full in the month.. Total SG&A expenses for the month are expected to be $85,000 which includes $25,000 of depreciation expense and $40,000 of salaries. Salary expenses are paid 75% cash within the month and 25% the following month. All beginning balances in the Wages Payable account are paid within the month. Other SG&A expense are paid in full during the month. . The company will repay $45,000 of the long term loan that is currently outstanding. In addition, the company will be making a $1,000 interest payment. . The company will pay $39,000 in dividends this month. Equipment costing $100,000 will be purchased this month. . The company's CFO requires that a minimum of $200,000 in cash be available at the end of October. . Using the balance sheet from September and the expected activity for October, construct a Cash Budget for the month October