Question: Using the information provided to calculate or prepare the following for October 1. The budgeted cash collections. 2. The budgeted merchandise purchases. 3. The budgeted

Using the information provided to calculate or prepare the following for October 1. The budgeted cash collections. 2. The budgeted merchandise purchases. 3. The budgeted cash disbursements for merchandise purchases. 4. The budgeted net operating income. 5. And end of month budgeted balance sheet. Assume the following changes to the underlying budgeting assumptions 1. 50% of a months credit sales are collected in the month. The sales are made in the remaining 50% are collected in the following month. 2. The ending merchandise inventory is always 10% of the following months cost of good sold. 3. 20% of all purchases are paid for in the month of purchases and 80% are paid for in the following month. Using these new assumptions, calculate or prepare the following for October 1. The budgeted cash collections. 2. The budgeted merchandise purchases. 3. The budget is cash dispersements for merchandise purchases. 4. Net, operating income. 5. And a month budgeted balance sheet.

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