La Famiglia Pizzeria provided the following information for the month of October:

a.Sales are budgeted to be $162,000. About 85% of sales is cash; the remainder is 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.

c.Food and supplies purchases, all on account, are expected to be $119,000. La Famiglia pays 25% in the month of purchase and 75% in the month following purchase.

d.Most of the work is done by the owners, who typically withdraw $6,000 a month from the business as their salary. (Note: The $6,000 is a payment in total to the two owners, not per 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.

e.Utilities average $5,950 per month. Rent on the building is $4,100 per month.

f.Insurance is paid quarterly; the next payment of $1,400 is due in October.

g.September sales were $181,500 and purchases of food and supplies in September equaled $130,000.

h.The cash balance on October 1 is $2,147.

Required:

Can you tell me if the answers below are correct? I feel like I am not calculating cash receipts properly.

If required, round your answers to the nearest dollar.

1.Calculate the cash receipts expected in October.

$207,820

2.Calculate the cash needed in October to pay for food purchases.

$127,250

3.Fill in cash budget for the month of October.

La Famiglia Pizzeria

Cash budget

For the month of October

Beginning balance $2,147

Cash receipts 207,820

Cash available $209,967

Less:

Payments for food and supplies purchases $127,250

Owners' draw 6,000

Workers' wages 6,570

Utilities 5,950

Rent 4,100

Insurance 1,400

Total disbursements $

151,270

Ending balance $

361,237