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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 $157,000. About 85%

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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 $157,000. About 85% of walesis 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 $104,000. 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 the salary. (Note: The $6.000 is a payment 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 $5,050 per month Rent on the building is 54,100 per month 1. Insurance is paid quarterly: the next payment of $1.500 is due in October September sales were $181.500 and purchases of food and supplies in September equaled $130,000 th. The cash balance on October 1 is $2,147 Required 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 o the month of October enter pause a shite 2. Calculate the cash needed in October to pay for food purchases. 3. Prepare a cash budget for the month of October La Fumigla Pizzeria Cashbudget For the month of October Beginning balance Cash receipts Payments for food and ples parchases Owners draw Workers' wages Total debu t s Ending balance e previous Next? -.0 4 vaz 9 Po backspace enter pause MF

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