TNT Pizzeria provided the following information for the month of October:
a. Sales are budgeted to be $120,000. About 15 percent of sales are cash; the remainder are on account.
b. TNT expects that, on average, 70 percent of credit sales will be paid in the month of sale, and 26 percent will be paid in the following month,
c. Food purchases, all on account, are expected to be $83,000. TNT pays 25 percent in the month of purchase and 75 percent 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. (The $6,000 is a payment in total to the two owners, not per person.) Various part-time workers cost $4,400 per month. They are paid for their work weekly, so on average 90 percent of their wages are paid in the month incurred and the remaining 10 percent in the next month.
e. Utilities average $5,200 per month. Rent on the building is $3,600 per month.
f. Insurance is paid quarterly; the next payment of $900 is due in October.
g. September sales were $130,000 and purchases of food in September equaled $98,000.
h. The cash balance on October 1 is $7,680.

Required:
1. Calculate the cash receipts expected in October.
2. Calculate the cash needed in October to pay for food purchases.
3. Prepare a cash budget for the month of October.