Sales are budgeted at $$460,000$ for October and $$470,000$ for November. Of these sales, $35\%$ will be for cash; the remalnder will

be credit sales. Forty percent of a month's credit sales are collected in the month the sales are made, and the remaining $60\%$ is

collected in the following month. All of the September $30$ accounts recelvable will be collected in October.

The budgeted cost of goods sold is always $45\%$ of sales and the ending merchandise inventory is always $30\%$ of the following

month's cost of goods sold.

All merchandise purchases are on account. Thirty percent of all purchases are pald for in the month of purchase and $70\%$ are pald

for in the following month. All of the September $30$ accounts payable to suppliers will be pald during October.

Selling and administrative expenses for October are budgeted at $$81,400,$ exclusive of depreclation. These expenses will be pald in

cash. Depreclation is budgeted at $$2,840$ for the month.Required:

Using the information provided, calculate or prepare the following:

a$.$ The budgeted cash collectlons for October.

b$.$ The budgeted merchandise purchases for October.

c$.$ The budgeted cash disbursements for merchandise purchases for October.

d$.$ The budgeted net operating income for October.

e$.$ A budgeted balance sheet at October $31.$

Assume the following changes to the underlying budgeting assumptions:

$(1)50\%$ of a month's credit sales are collected in the month the sales are made and the remaining $50\%$ is collected in the following

month, $(2)$ the ending merchandise Inventory is always $10\%$ of the following month's cost of goods sold, and $(3)20\%$ of all purchases

are pald for in the month of purchase and $80\%$ are pald for in the following month. Using these new assumptions, calculate or prepare

the following:

a$.$ The budgeted cash collections for October.

b$.$ The budgeted merchandise purchases for October.

c$.$ The budgeted cash disbursements for merchandise purchases for October.

d$.$ Net operating income for the month of October.

e$.$ A budgeted balance sheet at October $31.$

Complete this question by entering your answers in the tabs below.Wheeling Company is a merchandiser that provided a balance sheet as of September $30$ as shown below:

The company is in the process of preparing a budget for October and has assembled the following data:

Sales are budgeted at $$460,000$ for October and $$470,000$ for November. Of these sales, $35\%$ will be for cash; the remalnder will

be credit sales. Forty percent of a month's credit sales are collected in the month the sales are made, and the remaining $60\%$ is

collected in the following month. All of the September $30$ accounts recelvable will be collected in October.

The budgeted cost of goods sold is always $45\%$ of sales and the ending merchandise inventory is always $30\%$ of the following

month's cost of goods sold.

All merchandise purchases are on account. Thirty percent of all purchases are pald for in the month of purchase and $70\%$ are pald

for in the following month. All of the September $30$ accounts payable to suppliers will be pald during October.

Selling and administrative expenses for October are budgeted at $$81,400,$ exclusive of depreclation. These expenses will be pald in

cash. Depreclation is budgeted at $$2,840$ for the month.