VeeLance Company is a merchandiser that provided a balance sheet as of September 30 as shown below:

VeeLance Company Balance Sheet September 30
Assets
Cash	$	69,400
Accounts receivable		166,000
Inventory		83,700
Buildings and equipment, net of depreciation		257,000
Total assets	$	576,100
Liabilities and Stockholders Equity
Accounts payable	$	246,600
Common stock		216,000
Retained earnings		113,500
Total liabilities and stockholders equity	$	576,100

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

1. Sales are budgeted at $620,000 for October and $630,000 for November. Of these sales, 35% will be for cash; the remainder will be credit sales. Forty percent of a months 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 months 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 $83,800, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,570 for the month.

Questions:

• Using the information provided, calculate or prepare a statement for each of the following:

a. Budgeted cash collections for October.

b. Budgeted merchandise purchases for October.

c. Budgeted cash disbursements for merchandise purchases for October.

d. Budgeted net operating income for October.

e. Budgeted balance sheet at October 31.