Peachtree's Siding and Window Co Peachtree's Siding and Window Co

Peachtree's Siding and Window Co.is a custom home improvement company.All sales are made on account: 30 percent of a month's sales are collected in the month of sale, 60 percent are collected in the month following the sale, and 8 percent are collected in the second month following the sale.Cash on hand on October 1 is estimated to be $32,000.
Merchandise purchases and operating expenses are paid as follows:
$$\begin{array} { | l | l | } \hline \text { In the month during which the merchardise is purchased or the cost is incured } & 80 \% \\\hline \text { In the subsequent month } & 20 \% \\\hline\end{array}$$
Peachtree's Siding and Window Co.'s budgeted income statement for each of the next three months is as follows:
$\begin{array}{lrr}&\text { August } & \text { September }&\text { October }\\ \text {Sales } &\$140,000&\$169,000&\$181,000\\ \text { Cost of goods sold: } &\\ \text { Beginning inventory } &\$16,400&\$28,900&\$25,600\\ \text { Purchases} & \underline{135,300}& \underline{141,500}& \underline{\$149,700}\\ \text {Goods available } &\$151,700&\$170,400&\$175,300\\ \text {Less: End inventory } & \underline{(28,900)}& \underline{(25,600)}& \underline{(21,200)}\\ \text { Cost of goods sold} & \underline{\$122,800}& \underline{\$144,800}& \underline{\$154,100}\\ \text { Gross profit} &\$17,200&\$24,200&\$26,900\\ \text { Operating expenses} & \underline{(11,400)}& \underline{(15,100)}& \underline{(14,300)}\\ \text {Operating income } & \underline{\$5,800}& \underline{\$9,100}& \underline{\$12,600}\\\end{array}$

Prepare a cash budget for the month of October.