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Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of October: a.Sales are budgeted to be $163,000. About 85% of

Preparing a Cash Budget

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

a.Sales are budgeted to be $163,000. 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 $100,000. 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 $1,000 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.

$fill in the blank 7ade97fa9f9c028_1

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

$fill in the blank 7ade97fa9f9c028_2

3.make a cash budget for the month of October.

La Famiglia Pizzeria

Cash budget

For the month of October

Beginning balance

$fill in the blank 0e09d5f7a023fed_1

Cash receipts

fill in the blank 0e09d5f7a023fed_2

Cash available

$fill in the blank 0e09d5f7a023fed_3

Less:

Payments for food and supplies purchases

$fill in the blank 0e09d5f7a023fed_4

Owners' draw

fill in the blank 0e09d5f7a023fed_5

Workers' wages

fill in the blank 0e09d5f7a023fed_6

Utilities

fill in the blank 0e09d5f7a023fed_7

Rent

fill in the blank 0e09d5f7a023fed_8

Insurance

fill in the blank 0e09d5f7a023fed_9

Total disbursements

$fill in the blank 0e09d5f7a023fed_10

Ending balance

$fill in the blank 0e09d5f7a023fed_11

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