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: $\begin{array}{l}\text { In the month during which the merchandise is purchased }&80\% \\\text { or the cost is incurred } \\\text { In the subsequent month }&20\%\end{array}$ Peachtree's Siding and Window Co.'s budgeted income statement for each of the next three months is as follows: $\begin{array}{c}\begin{array}{lll}\\\text {Sales}\\\text {Cost of goods sold:}\\\text {Beginning inventory}\\\text {Purchases}\\\text {Goods available}\\\text {Less: End. inventory}\\\text {Cost of goods sold}\\\text {Gross profit}\\\text {Operating expenses}\\\text {Operating income} \end{array}\begin{array}{c}\text { August } \\\$ 140,000 \\ \\\$ 16,400 \\\underline{135,300}\\ \$ 151,700 \\\underline{(28,900)}\\\underline{\$ 122.800} \\ \$ 17,200 \\\underline{(11.400)}\\ \underline{\underline{\$ 5.800}} \end{array}\begin{array}{lll}\text {September}\\\$ 169,000 \\\\ \$ 28,900 \\ \underline{141.500} \\\$ 170,400 \\ \underline{(25,600) } \\ \underline{\$ 144,800} \\ \$ 24,200 \\ \underline{ (15,100) } \\ \underline{ \underline{\$ 9,100}} \end{array}\begin{array}{lll}\text { October } \\\$ 181,000 \\\\\$ 25,600 \\ \underline{\$ 149,700}\\\$ 175,30 \\ \underline{(21,200)}\\\$ 154,100 \\\$ \$ 26,900 \\ \underline{(14,300)}\\ \underline{ \underline{\$ 12,600}} \end{array}\end{array}$
Prepare a cash budget for the month of October.