I need help on 2 accounting questions. see problems attached.

Thank you,

Problem 1 The following information pertains to the operating budget for Opa Locka Stuff Corporation. Sales for August were $175,000 Sales for September were $185,000 Budgeted sales for October is $182,000 and for November is $226,000. Cash sales are 10% of total sales Collections for sales on account are 50% in the month of sale, 40% the next month, 8% in the third month. Gross margin is 40% of sales. Purchases are paid 30% in the month of purchase and 70% in the next month. Merchandise is bought and sold in the same month. There is no beginning or ending inventory. Operating, general & administrative costs are $62,000 each month, $4,000 of which is depreciation expense. A downpayment on new equipment for January delivery is due on October 5 th in the amount of $14,000. Opa Locka policy is to end each month with $20,000 cash on hand. Beginning cash balance on October 1 is $20,000. The outstanding loan balance on October 1 is $30,000. What are . . . Collections from sales for Disbursements for purchases Cash balance at the end of (before borrowing/repaying) Loan balance at the end of Operating income for Cash flow for Uncollected balance from sales at the end of Unpaid balance from purchases at the end of October _____________ November October _____________ November October _____________ November October _____________ November October _____________ November October _____________ November November November 1 _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ Problem 2 USA Company's cost system assigns MSDA expenses to customers using a rate of 35% of sales revenue. The new CFO has discovered that USA's customers differ greatly in their ordering patterns and interaction with USA's sales force. Because the CFO believes USA's cost system does not accurately assign MSDA expenses to customers, she developed an ABC system and gathered the following information. Obama Nixon Sales $975,000 $990,000 Cost of Goods Sold 490,000 490,000 Sales representative travel 1 12,000 91,000 Service customers 33,000 235,000 Handle customer orders 3,000 35,000 Ship to customers 60,000 175,000 Required: (a) Using the current cost system's approach of assigning MSDA expenses to customers using a rate of 35% of sales revenue, determine the operating profit associated with Obama and with Nixon. (b) Using the activity-based costing information provided, determine the operating profit associated with Obama and with Nixon. 2