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Janet Wooster owns a retail store that sells new and used sporting equipment. Janet has requested a cash budget for October After examining the records

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Janet Wooster owns a retail store that sells new and used sporting equipment. Janet has requested a cash budget for October After examining the records of the company, you find the following: a. Cash balance on October 1 is $1,120. b. Actual sales for August and September are as follows: August September Cash sales $6,000 $4,500 Credit sales 58,000 61,000 Total sales $64,000 $65,500 c. Credit sales are collected over a three-month period: 40 percent in the month of sale, 36 percent in the next month, and 2 percent in the second month after the sale. The remaining sales are uncollectible. d. Inventory purchases average 70 percent of a month's total sales. Of those purchases, 45 percent are paid for in the month of purchase. The remaining 55 percent are paid for in the following month. e. Salaries and wages total $3,850 per month f. Rent is $3,150 per month 9. Taxes to be paid in October are $1,635. h. Janet usually withdraws $3,500 each month as her salary. 1. Advertising is $1,500 per month. 1. Other operating expenses total $3,800 per month. k. Internet and telephone fees are $320 per month Janet tells you that she expects cash sales of $5,000 and credit sales of $64,000 for October. She likes to have $3,000 on hand at the end of the month and is concerned about the potential October ending balance. Prepare a cash budget for October. Include supporting schedules for cash collections and cash payments. Round your intermediate computations and final answers to the nearest dollar Wooster Sporting Goods Store Cash Budget For the Month of October Beginning cash balance $ 1,120 Collections: Cash sales Credit sales: October September August Total cash available Disbursements: Inventory purchases: October September Salaries and wages Rent Taxes Other operating expenses Owner withdrawal Advertising Internet and telephone Ending cash balance Feedback

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