Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: The company is in the process of pieparing a budget for October and has asjembled the following data: 1 Siles bre budgeted at $460,000 for October and $470,000 for Novembec, Of these sales, 35% will be for cash; the remainder will be credit sales. Forty percent of o month's credit sales are coliecred in the month the sales are made, and the remaining 60% is collected in the followina month. Ail of the Seotember 30 accounts recelvable will be collected in October. 2. The budgeted cont of poods sold is aWays 45% of soles and the ending merchandise inventory is alwoys 30x of the following momus costot goods sold. 3. Al merchandise purchases me on account thirty percent of all purchases are paid for in the month of purchase and 70S are paid for in the following month. All of the Septembet 30 accounts payable to suppliers wit be paid during Octobet. 4. Sellina and odministrative expenses for October are budaeted at 381,400 , exdusive of depreciation. These expenses wil be paid ia cash Deprecintion is budpefed of 52.1840 for the month. Aequired: Aequired: 1. Using the information provided, catculate or prepare the following b. The budgeted merchandise purchnses for October. e. The budgeted cash disbursements for merchandise purchases for October. d. The budpeted net operating income for October. i. A bodgeled balanke shert in October 31 Required: 1. Using the information provided, calculote 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. - A budgeted balance sheet at October 31 2. Assume the following changes to the underlying budgeting assumptions: (1) 50% of a month's credit sales are collected in the month the sales are made and the remaining 50% is collected in the following 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 . Complete this question by entering your answers in the tabs below. Prepare the budoeted cash coflection for October. Assume that 50% of a month's credit sales are collected in the month the sales are made and the remalning 50% is collected in the following month, (2) the ending merchandise inventory is always arve paid for in the followiog month
