Problem 9-34 Cash Budget The controller of Munishi Company is gathering data to prepare the cash budget for October. She plans to develop the budget from the following information: a. Of all sales, 45 percent are cash sales. b. Of credit sales, 35 percent are collected within the month of sale. Half of the credit sales collected within the month receive a 1 percent cash discount (for accounts paid within 12 days). Forty percent of credit sales are collected in the following month; 23 percent of credit sales are collected the month thereafter. Bad debts are accepted as a normal part of selling on credit. c. Sales for the third and fourth quarters of the year follow. (Note: The first three months are actual sales, and the last three months are estimated sales.) d. The company sells all that it produces each month. The cost of raw materials equals 32 percent of each sales dollar. The company requires a monthly ending inventory equal to the coming month's production requirements. Of raw materials purchases, 50 percent are paid for in the month of purchase. The remaining 50 percent are paid for in the following month. e. Wages total $110,000 each month and are paid in the month incurred. f. Budgeted monthly operating expenses total $385,000, of which $50,000 is depreciation and $7,000 is expiration of prepaid insurance (the annual premium of $84,000 is paid on January 1). g. Dividends of $115,000, declared on September 30, will be paid on October 15. h. A new delivery truck will be purchased for $124,000 on October 9 . i. On October 12, an old truck will be sold for $12,500. j. The company maintains a minimum cash balance of $10,000. k. The cash balance on October 1 is $35,000. Required: Prepare a cash budget for October. Include a supporting schedule that details the cash collections from sales