Wheeling Company is a merchandiser that provided a balance sheet as of September $30$ as shown below.

Wheeling Company

Balance Sheet

September $30$

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

Sales are budgeted at $$580,000$ for October and $$590,000$ 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 $60\%$ are collected in the following month. All of the September $30$ accounts recelvable will be collected in October.

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.

All merchandise purchases are on account. Thirty percent of all purchases are pald for in the month of purchase and $70\%$ are pald for in the following month. All of the September $30$ accounts payable to suppliers will be paid during October.

Selling and administrative expenses for October are budgeted at $$87\mathrm{.}800,$ excluslve of depreciation. These expenses will be paid in cash. Depreclation is budgeted at $$2,680$ for the month.

Required:

Using the Information provided, calculate or prepare the following for October:

a$.$ The budgeted cash collections.

b$.$ The budgeted merchandise purchases.

c$.$ The budgeted cash disbursements for merchandise purchases:

d$.$ The budgeted net operating income.

e$.$ An$-$end$-$of$-$month budgeted balance sheet:

$2$ Assume the following changes to the under ying budgeting aseumptions:

$50\%$ of a month's credit sales are collected in the month the sales are made and the remaining $50\%$ are collected in the following month