Exercise 8-17 Cash Flows; Budgeted Income Statement and Balance Sheet (L08-2, LO8-3, LO8-4, LO8-9 LO8-10] Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below. Wheeling Company Balance Sheet September 30 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 59,000 90,000 32,480 214, eee $ 395,400 $ 73,000 216,000 106,480 $ 395,480 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $240,000 for October and $250,000 for November. Of these sales, 35% wil 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 recevable 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 merlaandise 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 $78,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,000 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. cash Depreciation is budgeted at $2000 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 merchandise purchases for October 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. Complete this question by entering your answers in the tabs below. Reg 1A Req 10 Req 1C Req 10 Req 1E Req 2A Reg 28 Req 2c Reg 20 Reg 2E Prepare the budgeted cash collections for October Budgeted cash collections for October Reg 1A Req 18 > e. A budgeted balance sheet at Utober 31 Complete this question by entering your answers in the tabs below. Req 1A Req] Req1c Req 1D Req 1E Reg 2A Reg 28 Req 2c Reg 20 Req 2E Prepare the budgeted Req 1B se purchases for October Budgeted merchandise purchases for October d. Net op e. A budgeted balance sheet at October 31. Complete this question by entering your answers in the tabs below. Reg 2c Reg 2D Reg 2 Red I Req 10 Rea Req ID Reg 1 Req 2A Req 20 Prepare the budgeted cash disbursements for merchandise purchases for October Budgeted cash disbursements for merchandise purchases for October e. A budgeted balance sheet at Der SL Complete this question by entering your answers in the tabs below. Red LA Reg 18 Req1c Req 10 Req1E Reg 2A Req 20 Req 2c Reg 20 Reg 2 Prepare the budgeted net operating income for October. Budgeed net operating income for October Complete this question by entering your answers in the tabs below. Reg 1A Req 18 Req 1C Reg 1D Req 1E Req 2A Req 28 Req 2c Req 2D Reg 2E Prepare a budgeted balance sheet at October 31. Wheeling Company Balance Sheet October 31 Assets Total assets Liabilities and Stockholders' Equity Total abilities and stockholders equity Complete this question by entering your answers in the tabs below. Req 1A Req 10 Req IC Req 1D Reg 1E Reg 2A Reg 28 Req 2c Reg 20 Reg 2E Prepare the budgeted cash collections for October. Assume that 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. Show less Budgeted cash collections for October Complete this question by entering your answers in the tabs below. Redio Reg LA Reg 1c Reg 1D Reg 13 Req1E Req 2A Reg 2c Req 2D Reg 2 Prepare the budgeted merchandise purchases for October. Assume that 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. Show less Budgeted merchandise purchases for October Complete this question by entering your answers in the tabs below. Reg 1A Reg to Req 1C Reg 1D Req 1E Reg 2A Reg 26 Req 2c Reg 20 Reg 2 Prepare the budgeted cash disbursements for merchandise purchases for October. Assume that 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. Show less Budged cash disbursements for merchandise purchases for October Complete this question by entering your answers in the tabs below. Reg 1A Reg 10 Req IC Req ID Req 1E Reg 2A Reg 26 Reg 2c Reg 20 Reg 2E Prepare the net operating income for the month of October. Assume that 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 Show less Niet operating income for October Reg 26 Reg 2A Req 2c Reg 2D Reg 2E Req 1E Req ID Req IA Reg 18 Req 1C Prepare a budgeted balance sheet at October 31. Assume that 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. Show less Wheeling Company Balance Sheet October 31 Assets Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity