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La Famiglia Pizzeria provided the following information for the month of October: Sales are budgeted to be $163,000. About 85% of sales is cash; the

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

  1. Sales are budgeted to be $163,000. About 85% of sales is cash; the remainder is on account.
  2. 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.
  3. Food and supplies purchases, all on account, are expected to be $104,000. La Famiglia pays 25% in the month of purchase and 75% in the month following purchase.
  4. 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.
  5. Utilities average $5,950 per month. Rent on the building is $4,100 per month.
  6. Insurance is paid quarterly; the next payment of $900 is due in October.
  7. September sales were $181,500 and purchases of food and supplies in September equaled $130,000.
  8. The cash balance on October 1 is $2,147.

Required:

If required, round your answers to the nearest dollar.

1. Calculate the cash receipts expected in October. $fill in the blank

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

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