In September,TEE Company, a merchandising firm that sells one product, assembled the following information and estimates to prepare a budget for October. Expected sales are

46,000 units at a price of $ 34 per unit. The cost of merchandise purchases is expected to be $20 per unit. Selling and administrative expenses are estimated at 319,000,of which $15,000 is depreciation. The October 1 cash balance is expected to be $38,000. TEE estimates that 80% of each month's sales are collected in the month of sale and the remaining 20% is collected in the month after sale. Expected sales for September are $920,000. The company pays for 30%

of its merchandise purchases during the month of purchase, and pays the remaining 70% during the month following purchase. Merchandise purchases for September are estimated to be $736,000 and the purchase cost per unit is $20.

All other out-of-pocket expenses are paid for in cash.

Requirement (a) TEE plans to purchase 31,000 units of merchandise in October. Prepare a cash budget or statement of estimated cash flows for October for the company.

Requirement (b) Prepare a budgeted income statement (for external reporting purposes) for the month ended October 31 for TEE Company.

In September, TEE Company, a merchandising firm that sells one product, assembled the following information and estimates to prepare a budget for October. Expected sales are 46,000 units at a price of $34 per unit. The cost of merchandise purchases is expected to be $20 per unit. Selling and administrative expenses are estimated at $319,000, of which $15,000 is depreciation. The October 1 cash balance is expected to be $38,000. TEE estimates that 80% of each month's sales are collected in the month of sale and the remaining 20% is collected in the month after sale. Expected sales for September are $920,000. The company pays for 30% of its merchandise purchases during the month of purchase, and pays the remaining 70% during the month following purchase. Merchandise purchases for September are estimated to be $736,000 and the purchase cost per unit is $20. All other out-of-pocket expense are paid for in cash. Read the requirements Requirement (a) TEE plans to purchase 31,000 units of merchandise in October. Prepare a cash budget or statement of estimated cash flows for October for the company. (Leave unused cells blank. Use a parentheses or a minus sign for a net cash outflow.) Cash inflows: 0 Requirements - X Cash outflows: Requirements (a) TEE plans to purchase 31,000 units of merchandise in October. Prepare a cash budget or statement of estimated cash flows for October for the company (b) Prepare a budgeted income statement (for external reporting purposes) for the month ended October 31 for TEE Company. Net cash flow Print Done Choose from any list or enter any number in the input fields and then continue to the next