Wheeling Company Balance Sheet Assets Cash Accounts receivable Inventory $ 72200 162,000 81,000 255,000 $ 570,200 Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equlty Accounts payable Common stock $ 238,700 216,000 15.500 570.200 Retained earnings Total iabilities and stockholders equity The company is in the process of preparing a budget for October and has assembled the following data 1 Sales are budgeted at $600,000 for October and $610.000 for November. Of these sales, 35% willbe for cash; the remainder will g 60% is 2. The budgeted cost of goods sold is al ways 45% of sales and the ending merchandise entory s always 30% of the following 3. All merchandise purchases are on account. Thirty percent of all purchases are paid in the month of purchase and 70% are paid 4. Selling and administrative expenses for October are budgeted at $81.200, exclusive of depreciation. These expenses will be paid in be credit sales. Forty percent of a month's credit sales are colected in the mon e sales are made and the re a collected in the following month. All of the September 30 accounts receivable wil be collected in October month's cost of goods sold for in the following month: All of the September 30 accounts payable to suppliers will be paid during October cash. Depreciation is budgeted st $2.550 for the month. Required: 1. Using the information provided, 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. The budgeted net operating income for October. e. A budgeted balance sheet at October 31 2. Assume the following changes to the underiying budgeting assumptions (1) 50% of month's credit sales are colected in the month the sales are made and the remains sos colected in the folosi month (2} the ending merchandise inventory is always 10% of the fol Owing month's cost of go ds sold and 3 20s afat p chases are paid for in the month of purchase and 80% are paid for in the toio ing month Using these new assumpdons, calculate or prepare the foowing a The buopeted cash coilections for Octobe b. The budgeted merchandise purchases for October c. The budgeted cash disbursements for merchandise purchases for October d. Net operating income for she month of October e. A budgeted balance sheet at October 31 Complete this question by entering your answers in the tabs below Prepare the budgeted cash collections for Oetober oish ooflections tor Catober