Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Wheeling Company Balance Sheet September 30 Assets $ 69,800 98,000 Cash Accounts receivable Inventory 37,800 310,000 Buildings and equipment, net of depreciation $515,600 Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 145,100 216,000 154 500 $515,600 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $280,000 for October and $290,000 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 $80,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $3,100 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 underlying budgeting assumptions: (1) 50% 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 paid for in the month of purchase and 80% are paid 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. in the following month's credit sales are collected in month the sales are made and coll remaining 50% Req 1A Req 1B Req 1C Rea 1E Rea 2A Reg 2B Req 2C Req 2D Req 2E Rea 1D Prepare the budgeted cash collections for October Budgeted cash collections for October Req 2E Req 1A Req 1B Req 1C Req 1D Rea 1E Req 2A Req 2B Req 2C Req 2D Prepare the budgeted merchandise purchases for October. Budgeted merchandise purchases for October Req 1E Req 2B Rea 2D Req 1A Req 1B Req 1C Req 1D Req 2A Rea 2C Reg 2E Prepare the budgeted cash disbursements for merchandise purchases for October. Budgeted cash disbursements for merchandise purchases for October Req 1C Req 1D Req 1E Req 2B Req 2C Reg 1A Req 1B Req 2A Reg 2D Req 2E Prepare the budgeted net operating income for October Budgeted net operating income for October Req 2D Req 1A Req 1B Req 1C Req 1D Req 1E Req 2A Req 2B Req 2C Req 2E Prepare a budgeted balance sheet at October 31 Wheeling Company Balance Sheet October 31 Assets Total assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity