Wheoling Company is a merchandiser that provided a balance sheet as of September 30 as shown below 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 cosh, the remainder will be credit sales. Forty percent of a month's credit sales are collected in the month the sales ate made, ond the remoining 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 alwoys 45% of sales and the ending merchandise inventory is always 30% of the following monthis cost of goods sold 3. All merchandise purchases are on account. Thirty petcent of all purchases are paid for in the month of purchose and 70% are poid for in the following month. All of the September 30 accounts payoble to suppliers will be paid during Octobet 4 Seling and administrative expenses for October are budgeted at $80.000, exclusive of deprecioton. These expenses will be paid in cash. Depreciation is budgeted at $2.930 for the month Required: 1. Using the informotion provided, calculate or prepare the following: . Reculfed: 1 Usund the intornation povovided, colculate or brepare the foliowing a The budgeled coshe codections tor Ochobiet 6. Tho budgeted merchandise purchases for Octobor c. The budgeled cash disthirsements for merchand se purchasers tor Wctober d. The budgeted net operating incpene for Octoben A) Abuggeted balisnice sheet ot Oetober 31 2. Assume the following changes to the uridenlying budgeting assumptions ave poid for in the month of purchase and 80 s. are paid for in the following morith Using these nerw assumptions, caleulate or piegage the Soligining a. Dha bubgeted cash cellections for Ockober. b. The budgeled inerchandise purchoses for Oetober c. The buiggefed cash dibbersersents formerchandise puictiases for Ociaber 4) Netopelating income for the dianth of Octobeet 4. A budgoted balance sheet at Qctober 31 Complete this queption try entering rour anwwers in the tabe below Brepart a budgeted balsnce sheet at Dcteber 31 Preparea budgeted balance sheet at October 31 . Complete this question by entering your answers in the tabs below. Prepare the budgeted cash collections for October. Assume that 50% of a month's credit sarfs 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. Complete this question by entering your answers in the tabs below. 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. Complete this question by entering your answers in the tabs below. 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 pald for in the following month. Complete this question by entering your answers in the tabs below. 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 pald for in the month of purchase and 80% are paid for in the following month. Prepare a budgeted balance sheet at October 31. Assume that 50%6 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 merchand ise inventory is always 10%5 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
