Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of October Sales are budgeted to be $161,000 About 85 of sales is cash the remainder is on account 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 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 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 Utilities average $5,950 per month Rent on the building is $4,100 per month Insurance is paid quarterly the next payment of $900 is due in October September sales were $181,500 and purchases of food and supplies in September equaled $130,000 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 309754000001071 1 2 Calculate the cash needed in October to pay for food purchases $fill in the blank 309754000001071 2 3 Prepare a cash budget for the month of October La Famiglia Pizzeria Cash budget For the month of October Beginning balance $fill in the blank 611a3bfd3022f8a 1 Cash receipts fill in the blank 611a3bfd3022f8a 2 Cash available $fill in the blank 611a3bfd3022f8a 3 Less Payments for food and supplies purchases $fill in the blank 611a3bfd3022f8a 4 Owners' draw fill in the blank 611a3bfd3022f8a 5 Workers' wages fill in the blank 611a3bfd3022f8a 6 Utilities fill in the blank 611a3bfd3022f8a 7 Rent fill in the blank 611a3bfd3022f8a 8 Insurance fill in the blank 611a3bfd3022f8a 9 Total disbursements $fill in the blank 611a3bfd3022f8a 10 Ending balance $fill in the blank 611a3bfd3022f8a 11

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Preparing a Cash Budget

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

Sales are budgeted to be $161,000. About 85% of sales is cash; the remainder is on account.
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.
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.
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.
Utilities average $5,950 per month. Rent on the building is $4,100 per month.
Insurance is paid quarterly; the next payment of $900 is due in October.
September sales were $181,500 and purchases of food and supplies in September equaled $130,000.
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 309754000001071_1

2. Calculate the cash needed in October to pay for food purchases. $fill in the blank 309754000001071_2

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

**La Famiglia Pizzeria** **Cash budget** **For the month of October**
Beginning balance	$fill in the blank 611a3bfd3022f8a_1
Cash receipts	fill in the blank 611a3bfd3022f8a_2
Cash available	$fill in the blank 611a3bfd3022f8a_3
Less:
Payments for food and supplies purchases	$fill in the blank 611a3bfd3022f8a_4
Owners' draw	fill in the blank 611a3bfd3022f8a_5
Workers' wages	fill in the blank 611a3bfd3022f8a_6
Utilities	fill in the blank 611a3bfd3022f8a_7
Rent	fill in the blank 611a3bfd3022f8a_8
Insurance	fill in the blank 611a3bfd3022f8a_9
Total disbursements	$fill in the blank 611a3bfd3022f8a_10
Ending balance	$fill in the blank 611a3bfd3022f8a_11