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Hi, I need Accounting help please Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of october: a. Sales are
Hi, I need Accounting help please
Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of october: a. Sales are budgeted to be $150,000. About 85% of sales are cash; the remainder are on account. b. La Famiglia expects that, on average, 70% of credit sales will be paid in the month of sale, and 28% will be paid in the following month. La Famiglia pays c. Food and supplies purchases, a on account, are expected to be $102,00 25% in the month of purchase and 75% in the month following purchase. Most of the work is done by the owners, who typically withdraw a month from the business as their salary. (Note: The $6,0oo is payment total to the two owners, not per d. person various part-time workers cost $7,300 per month. They are paid for their work weekly, so on average 90% of their wages are paid in the month incurred and the remaining 10% in the next month. $4,100 per month. e. Utilities average $5,950 per month. Rent on the building is due in october. f. Insurance is paid quarterly; the next payment of $1,100 is September equaled g. September sales were $181,500 and purchases of food and supplies in $130,000. 1 is $2,147. h. The cash balance on october Required: answers to the nearest dollar. if required, round your in October. 1. Calculate the cash receipts expected 2. Calculate the cash needed in october to pay for food purchases
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