Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of October: a. Sales are budgeted to be $159,000. 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 $102,000. 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 1. Insurance is paid quarterly; the next payment of $1,300 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. wa 2. Calculate the cash needed in October to pay for food purchases. 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 linii ini Utilities Rent Insurance Total disbursements Ending balance