San Students Central Piedmont Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Wheeling Company Balance Sheet September 30 Assets Cash $ 70,600 Accounts receivable 118,000 Inventory 51,300 Buildings and equipment, net of depreciation 244,000 Total assets $ 483,900 Liabilities and Stockholders' Equity Accounts payable $ 119,900 Common stock 216,000 Retained earnings 148,000 Total liabilities and stockholders' equity 483,900 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $380,000 for October and $390,000 for November. Of these sales, 35% will be for cash the remainder 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 receivable will be collected in October 2. 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. 3. All merchandise purchases are on account. Thirty percent of all purchases are paid for in the month of purchase and 70% are paid for in the following month. All of the September 30 accounts payable to suppliers will be paid during October 4. Selling and administrative expenses for October are budgeted at $79,600, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,440 for the month.