Preparing a Cash Budget Oliver's Bistro provided the following information for the month of October: a. Sales are budgeted to be $395,000. About 80% of sales is cash; the remainder is on account b. Oliver's Bistro 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 $285,000. Oliver pays 35% in the month of purchase and 65% in the month following purchase. d. Most of the work is done by Oliver and his wife, who typically withdraw $18,500 a month from the business as their salary. (Note: The $18.500 is a payment in total to the two owners, not per person.) Various part-time workers cost $29,300 per month. They are paid for their work weekly, so on average 90% of their wages is paid in the month incurred and the remaining 10% in the next month. e. Uites and insurance average $8,750 per month. Rent on the building is $14,000 per month f. In September, a freezer had to be replaced for $39.000. That amount is due in total in October 9. September sales were $390,000, and purchases of food and supplies in September equaled $275,000 h. The cash balance on October 1 is $1.916. Required: 1. Calculate the cash receipts expected in October (Hint: Remember to include both cash sales and payments from credit sales.) 2. Calculate the cash needed in October to pay for food purchases 3. Prepare a cash budget for the month of October Oliver's Bistro Cash Budget For the H of October for Gradie Calculate the cash needed in October to pay for food purchases. 3. Prepare a cash budget for the month of October Oliver's Bistro ( B BH For the Month of October Beginning balance Cash recepts