Question

V2.cengagenow.com eBook Video 0 Calculator 0 Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of October a. Sales are budgeted to be $164,000. About 85% of sales is cash the remainder is on account. b. La Famiglia expects that, on average, 70% of credit sales will be paid in the month of sale, and 28% will be paid in the following month c. Food and supplies purchases, all on account, are expected to be $98,000. La Famiglia pays 25% in the month of purchase and 75% in the month following purchase d. Most of the work is done by the owners, who typically withdraw $6,000 a month from the business as their salary. (Note: The $6,000 is a payment in total to the two owners, not per person.) Various part-time workers cost $7,300 per month. They are paid for their work weekly, so on average 90% of their wages are paid in the month incurred and the remaining 10% in the next month. e. Utilities average $5,950 per month. Rent on the building is $4,100 per month f. Insurance is paid quarterly; the next payment of $1,500 is due in October 9. September sales were $181,500 and purchases of food and supplies in September equaled $130,000 h. The cash balance on October 1 is $2,147. Required: If required, round your answers to the nearest dollar. 1. Calculate the cash receipts expected in October 2. Calculate the cash needed in October to pay for food leve 3. Prepare a cash budget for the month of October. La Famiglia Pizzeria Cash budget For the month of October Beginning balance Cash receipts CAR Cash available revious Next > Check My Work 5 more Check My Work uses remaining mal instructor Save and it Submit Algement for Grading All work ved

Answer 1

134,400 Cash Receipts Expected in Otober Cash sales (85% of Total sales) [ $164,000 x 85' Collection from Credit Bales: a) for september month [ $ 181, Soo X ISV.X281] b) for October month $ 164 000 x 15 x 70] Total 7623 17220 (A) 164243 Cach needed in October to pay for food purchases for septeraber urchoses [ $ 130,000 x 75 y.] hos Schoben purchases [ $ 98000 x 25%] Total (B) 93 Soo 24,500 23, 000 Cash Budget for the month of October Reginning balance 2,147 Cash Recipts (A) 164243 Cash available 166,390 Less: Payment for expenses. for food purchases (B) (122,000) for bolory to owners (6.000) for salary to part-time workers (7,300) for Utilities (5.950) for Rent (4,100) for Insurance (Quortenly) (1500) 19940 Closing lesh balance