Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Required: 1 Using the information provided, calculate prepare the folowing: 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 Wheeling Company Balance Sheet September 30 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Totall abilities and stockholders' equity $ 75,800 154.000 75.600 292,000 $598,400 $ 244,900 216,000 137.500 $598,400 2. Assume the following changes to the underlying budgeting assumptions: U 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 prepe the following: a. The budgeted cash collections for October b. The budgeted merchandise purchases for October 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. The company is in the process of preparing a budget for October and has assembled the following data: 1 Sales are budgeted at $560,000 for October and $570,000 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 3D 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. Al 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 S80.000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2.930 for the month Reg 1A Reg 13 Reg 1C Reg 2A Rec 20 Reg 2 Prepare the budgeted merchandise purchases for October. Assume that 50% of a month's credt sales are collected in the month the sales are made and the remaining 50V 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 Budgeted merchandise purchases for Reg 2A Reg 2c > Reg 1A Reg 13 Reg 1C Reg 2A Ree 28 Reg 2c 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 so are paid for in the following month. Show less Budgeted Chesh disbursements for merchandise purchases for 205390