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La Famiglia Pizzeria provided the following information for the month of October: a. Sales are budgeted to be $157,000. About 85% of sales is cash;
La Famiglia Pizzeria provided the following information for the month of October: a. Sales are budgeted to be $157,000. 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 $96,000. La Famiglia pays 25% in the month of purchase and 75% in the month following purchase. 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 $1,600 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: If required, round your answers to the nearest dollar. 1. Calculate the cash receipts expected in October. x 2. Calculate the cash needed in October to pay for food purchases. $ Feedback T Cheok My Work Incorrect 3. Prepare a cash budget for the month of October
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