Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of October: a. Sales are budgeted to be $154,000. About 85% of sales is cash; the remainder is on account. 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 $107,000. La Famiglia pays 25% in the month of purchase and 75% in the month following purchase. 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. h. September sales were $181,500 and purcha Required: If required, round your answers to the nearest dollar. 1. Calculate the cash receipts expected in October. 2. Calculate the cash needed in October to pay for food purchases. 3. Prepare a cash budget for the month of October. Mesarisy a Cach Bacgot. a. Sxes are tudpeted to te 8154,600 , Abcir 85 the of eves is caeh, the rensinder is an a count. L. truuranes is pard puarterty; the rext peyment of $1,400 is deve in Dctabur. Receraired If resures. nund wour anewers tw the noves, doblir 1. Calousto the cast rece pes tapected in Gcoober 2. Culturbe Ure cast isvobed in Dellaser to per for faced purthinech. 3. Prepors a cant tudget for the marth of Detaser