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SE 7 . 3 2 Preparing a cash budget Trios SUTMREASE 7 RTII La Famiglia Pizzeria provided the following information for the month of October:
SE Preparing a cash budget Trios SUTMREASE RTII La Famiglia Pizzeria provided the following information for the month of October: a Sales are budgeted to be $ About per cent of sales are cash; the remainder are on account. b La Famiglia expects that, on average, per cent of credit sales will be paid in the month of sale and per cent will be paid in the following month. c Food and supplies purchases, all on account, are expected to be $ La Famiglia pays per cent in the month of purchase and per cent in the month following purchase. d Most of the work is done by the owners, who typically withdraw $ a month from the business as their salary. INote: The $ is a payment in total to the two owners, not per person. Various parttime workers cost $ per month. They are paid for their work weekly. so on average per cent of their wages are paid in the month incurred and the remaining per cent in the next month. e Utilities average $ per month. Rent on the building is $ per month. f Insurance is paid quarterly; the next payment of $ is due in October. g September sales were $ and purchases of food and supplies in September equalled $ The cash balance on October is $ Required: Calculate the cash receipts expected in October. Hint: Remember to include both cash sales and payments from credit sales. Calculate the cash needed in October to pay for food purchases. Prepare a cash budget for the month of October.
SE Preparing a cash budget
Trios
SUTMREASE RTII
La Famiglia Pizzeria provided the following information for the month of October:
a Sales are budgeted to be $ About per cent of sales are cash; the remainder are on account.
b La Famiglia expects that, on average, per cent of credit sales will be paid in the month of sale and per cent will be paid in the following month.
c Food and supplies purchases, all on account, are expected to be $ La Famiglia pays per cent in the month of purchase and per cent in the month following purchase.
d Most of the work is done by the owners, who typically withdraw $ a month from the business as their salary. INote: The $ is a payment in total to the two owners, not per person. Various parttime workers cost $ per month. They are paid for their work weekly. so on average per cent of their wages are paid in the month incurred and the remaining per cent in the next month.
e Utilities average $ per month. Rent on the building is $ per month.
f Insurance is paid quarterly; the next payment of $ is due in October.
g September sales were $ and purchases of food and supplies in September equalled $
The cash balance on October is $
Required:
Calculate the cash receipts expected in October. Hint: Remember to include both cash sales and payments from credit sales.
Calculate the cash needed in October to pay for food purchases.
Prepare a cash budget for the month of October.
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