Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Required: 1. Using the Information provided, calculate or prepare the following: 2. The budglede collecticris for Olcker. b. The budgeted merchandise purchases for October The buddered cash disbursements for merchandise purchases for October Thc huiccted nct ancrating Inc in October A buulgeld salongestel al Ocluber 31. Where Cany Balance Sheet September 30 Assets Cash Accounts receivable Inventory Ruilings and i n , of deprecatini Tollssels Liabilities and Stockholders' Equity Account Cayable Common stock Releired earnings Total abilities and stockholders' cquity $ 75.800 154000 75 600 297.000 $598.400 $ 244 900 1.000 137500 559 100 2 Assume the following changes to the underlying budgeting assumptions: 1150% of man's crescil sales are called in the mi ihesles reminded thereinining 506 is collected in the following month, (2) the ending merchandise inventory is always 10% of the following month's cost of goods sold, end (J 20% of all purchases are pald for in the month of purchase and 80% are paid for in the following month. Using these new assumptions, calculate or prepare the following: 2. The budyeled Lush collections for October b. The budgeted merchandise purchases for October c. The budgeted cash disbursements for merchandise purchascs for October Nel operating in het for the month of October e. A budoeled balance sheet at October 31. The curriperty is in the process of preparing a tutdul for Oc:label and assembled the followiny dal 1. Seles are budgeted at $560,000 for October and 5570,000 for November. Of these sales, 35% will be for Cash; the remainder wil be crec 1 sales. Forty percent of a month's crecitals are colected in the month the sales are made, and the remaining 60% 15 callected in the following month. All of the September 20 accounts receivable will be collected in Ortahcr. 2. The budgelen tosial buds sold is always 45% of sales and the ending in h is inventory is always 30% of Lire 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% and pald for in the following inc . All of the Septembre 30 in ble la suppliers will be paid during Ociner. 1. 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 $2.930 for the month. Regt Key to Key 10 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 oollected 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 Hughed merchandise purchases for $ 232,450 Rota Rux. 12 Res. 10 R 24 R2B Prepare the hucqatod cash disbursements for marchandise purchases for robar. Assume that 50% of a month's credit salas are collected in the month the sales are made and the remaining 50 ks collected in the following month, 2) the ending marchandise Inventory is always 10% of the towing months to contes ald, and (3) 20% af all purchases are paid for in the month of purchase and so are paid for in the following month. Show less Ludged cash disbursements for merchandise purchases for 205.380
