Question: Davis Manufacturing Inc. provided the following sales information for the month of October: September October Actual Budget Cash sales $ 19,500.00 $ 18,000.00 Credit sales 110,500.00 102,000.00 Total sales $130,000.00 $120,000.00 For credit sales, the collection pattern is as follows: Month of sales 70% Month following sales 26% Based on past experience, the company estimates the remaining credit sales are uncollectible. Inventory purchases average 65% of current month's total sales. Payments for inventory are made as follows: Month of purchase Month following purchase 25% 75% Am WOOD : Other expenses are as follows: Salaries and wages per month $ 10,440.00 Rent per month 3,600.00 Utilities per month 5,200.00 Insurance (to be paid in October) 900.00 Depreciation expenses per month 1,500.00 October 1 cash balance is $7,680.00. Required: Prepare a tash budget for the month of October and use it to answer the following questions. 3: 4 : Cash sales and collections on account for the month are $ Payments for inventory for the month are $ A A Payments for all other expenses for the month are $ A The ending cash balance at the end of the month is $ A Previous Page Next Page Page