90.2K

Verified Solution

Link Copied!

need help with part 1,2,and 3

Preparing a Cash Budget La famiglia Pizzeria provided the following information for the month of October a. Sales are budgeted to be $157,000. About 85% of sales is cash the remainder is an account bta 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 Food and supplies purchases, all on account, are expected to be $116,000. 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 story. (Note: The $6,000 ss a payment in total to the two owners, 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 Utilities average $5.950 per month. Rent on the building is $4,100 per month Linsurance is paid quarterly; the next payment of $1,200 is due in October 0: September we were $101,500 and purchases of food and supplies in September equaled $130,000 I The cash balance on October is $2,147 Required: 1. Calculate the cash receipts expected in October 2. Calculate the cash needed in October to pay for food purchases; 2. Calculate the cash needed in October to pay for food purcha 3. Prepare a cash budget for the month of October. La Famiglia Pizzeria Cash Budget For the Month of October Beginning balance Cash receipts Cash available $ Less: Payments for food and supplies purchases $ Owners' draw Workers' wages Utilities Rent Insurance Total disbursements Ending balance

Answer & Explanation Solved by verified expert

See Answer