Prepare a cash budget, properly labeled and in good accounting order, for October based on the following:

Forecast sales

July $150,000 Credit sales are 40% of total sales and are collected

August $170,000 as follows: 20% one month after the sale, 30%

Sept. $180,000 two months after the sale and 50% three months

Oct $190,000 after the sale

Accounts payable are paid as follows: 70% one month after the purchase and 30% two months after the purchase. Rent is $1,500 per month and utilities are $700 per month.

In October, the firm will have an insurance payment due of $450.

Expected Accounts Payable

August $170,000

Sept $175,000

Oct. $180,000

Beginning cash for October is $3,200