La Famiglia Pizzeria provided the following information for themonth of October:

Sales are budgeted to be $156,000. About 85% of sales is cash;the remainder is on account.

La Famiglia expects that, on average, 70% of credit sales willbe paid in the month of sale, and 28% will be paid in the followingmonth.

Food and supplies purchases, all on account, are expected to be$116,000. La Famiglia pays 25% in the month of purchase and 75% inthe month following purchase.

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 perperson.) Various part-time workers cost $7,300 per month. They arepaid for their work weekly, so on average 90% of their wages arepaid in the month incurred and the remaining 10% in the nextmonth.

Utilities average $5,950 per month. Rent on the building is$4,100 per month.

Insurance is paid quarterly; the next payment of $1,600 is duein October.

September sales were $181,500 and purchases of food and suppliesin September equaled $130,000.

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 inOctober.
$

2. Calculate the cash needed in October to payfor food purchases.
$

3. Prepare a cash budget for the month ofOctober.