Question 3 Osama Bistro provided the following information for the month of October: Sales are budgeted to be RM395,000. About 80% of sales is cash: the reminder is on account. Osama 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. Food and supplies purchases all on account are expected to be RM285,000, Osama pays 35% in the month of purchase and 65% in the month following purchases. Most of the work is done by Osama and his wife who typically withdraw Rm18,500 a month from the business as their salary (Note: the RM18,500 is a payment in total of the two owners, not per person). Various part time workers cost RM 29,300 per month. They are paid for their work weekly so on average 90%nof their wages is paid in the month incurred and the remaining 10%in the next month. Utilities and insurance average RM8,750 per month. Rent on the building is RM14,000 per month In September a freezer had to be replaced for RM39,000. The amount is due in total in October September sales were RM390,000 and purchases of food and supplies in September equaled RM275,000. The cash balance on October 1 is RM1,916. Required: a) Calculate the cash receipts expected in October (Remember to include both cash sales and payments from credit sales). b) Calculate the cash needed in October to pay for food purchases. c) Prepare a cash budget for the month of October