Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Wheeling Company Balance Sheet September 30 Assets Cash $ 61,000 Accounts receivable 170,000 Inventory 86,400 Buildings and equipment, net of depreciation 249,000 Total assets $ 566,400 Liabilities and Stockholders' Equity Accounts payable $ 217,900 Common stock 216,000 Retained earnings 132,500 Total liabilities and stockholders' equity $ 566,400 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $640,000 for October and $650,000 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 7098 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 $96,600, exclusive of depreciation. These expenses wil be paid in cash. Depreciation is budgeted at $2,490 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: 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 . The budgeted merchandise purchases for October The budgeted cash disbursements for merchandise purchases for October Net operating income for the month of October. 2. A budgeted balance sheet at October 31. Prepare a budgeted balance sheet at October 31. Assume that 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. Show less Wheeling Company Balance Sheet October 31 Assets $ 0 Total assets Liabilities and Stockholders' Equity Total assets $ 0 Liabilities and Stockholders' Equity Total liabilities and stockholders' equity $ 0 Req 1A Req 18 Req 1C Req 1D Reg 1E Reg 2A Reg 28 Reg 20 Reg 2D Reg 2E Prepare the budgeted merchandise purchases for October Budgeted merchandise purchases for October Reg 1A Reg 1B Reg 10 Reg 10 Reg 1E Reg 2A Reg 28 Reg 20 Reg 20 Reg 2E Prepare the budgeted net operating income for October Budgeted net operating income for October Prepare a budgeted balance sheet at October 31. Wheeling Company Balance Sheet October 31 Assets Total assets $ 0 Liabilities and Stockholders' Equity Total assets Liabilities and Stockholders' Equity $ 0 Total liabilities and stockholders' equity $ 0 Reg 1A Reg 13 Req 1C Reg 10 Reg 1E Reg 2A Reg 28 Reg 20 Reg 2D Pea 2E Prepare the budgeted cash collections for October. Assume that 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. Show less Budgeted cash collections for October Req 1A Reg 18 Reg 1c Req 1D Reg 1E Reg 2 Reg 28 Reg 20 Reg 20 Reg 2 Prepare the budgeted merchandise purchases for October. Assume that 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. Show less Budgeted merchandise purchases for October Req 1A Reg 18 Reg 10 Reg 1D Req le Reg 2 Reg 26 Reg 20 Reg 2D Reg 2E Prepare the budgeted cash disbursements for merchandise purchases for October. Assume that 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. Show less Budgeted cash disbursements for merchandise purchases for October Reg 1A Reg 13 Reg 10 Reg 10 Reg 1E Reg 2A Red 2B Reg 20 Reg 2D Reg 2 Prepare the net operating income for the month of October. Assume that 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. Show less Budgeted net operating income for October Prepare a budgeted balance sheet at October 31. Assume that 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. Show less Wheeling Company Balance Sheet October 31 Assets $ Total assets iahilities and Charlholdere Enir Total assets Liabilities and Stockholders' Equity $ 0 Total liabilities and stockholders' equity $ 0