Gessel Co.'s projected sales are as follows:

August

$160,000

September

$180,000

October

$220,000

November

$200,000

Gessel estimates that it will collect 30% of sales in the month of sale, 50% in the month after the sale, and 18% in the second month following the sale. Two percent of all sales are estimated to be bad debts. Gessel purchases inventories on account totaling $130,000 during August, $140,000 during September, and $100,000 during October. Gessel pays 25% of purchases in the month purchased and 75% in the following month.

a.How much is Gessel Co.'s budgeted cash receipts for October?

b. How much is the net increase or decrease in cash for Gessel for October?