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Wheeling Company is a merchandiser that provided a balance sheet as of September $30$ as shown below:

Wheeling Company

Balance Sheet

September $30$

Assets

Cash $ $74,800$

Accounts receivable $114,000$

Inventory $48,600$

Buildings and equipment, net of depreciation $309,000$

Total assets $ $546,400$

Liabilities and Stockholders$$ Equity

Accounts payable $ $213,900$

Common stock $216,000$

Retained earnings $116,500$

Total liabilities and stockholders$$ equity $ $546,400$

The company is in the process of preparing a budget for October and has assembled the following data:

Sales are budgeted at $$360,000$ for October and $$370,000$ for November. Of these sales, $35\%$ will be for cash; the remainder will be credit sales. Forty percent of a month$$s credit sales are collected in the month the sales are made, and the remaining $60\%$ is collected in the following month. All of the September $30$ accounts receivable will be collected in October.

The budgeted cost of goods sold is always $45\%$ of sales and the ending merchandise inventory is always $30\%$ of the following month$$s cost of goods sold.

All merchandise purchases are on account. Thirty percent of all purchases are paid for in the month of purchase and $70\%$ are paid for in the following month. All of the September $30$ accounts payable to suppliers will be paid during October.

Selling and administrative expenses for October are budgeted at $$80,600,$ exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $$3,090$ for the month.

Required:

$1.$ Using the information provided, calculate or prepare the following:

a$.$ The budgeted cash collections for October.

b$.$ The budgeted merchandise purchases for October.

c$.$ The budgeted cash disbursements for merchandise purchases for October.

d$.$ The budgeted net operating income for October.

e$.$ A budgeted balance sheet at October $31.$

$2.$ Assume the following changes to the underlying budgeting assumptions:

$(1)50\%$ of a month$$s credit sales are collected in the month the sales are made and the remaining $50\%$ is collected in the following month, $(2)$ the ending merchandise inventory is always $10\%$ of the following month$$s cost of goods sold, and $(3)20\%$ of all purchases are paid for in the month of purchase and $80\%$ are paid for in the following month. Using these new assumptions, calculate or prepare the following:

a$.$ The budgeted cash collections for October.

b$.$ The budgeted merchandise purchases for October.

c$.$ The budgeted cash disbursements for merchandise purchases for October.

d$.$ Net operating income for the month of October.

e$.$ A budgeted balance sheet at October $31.$

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