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PROBLEM 7-16A Schedules of Expected Cash Collections and Disbursements [LO2, LO4, L08] Calgon Products, a distributor of organic beverages, needs a cash budget for September. The following information is available: The cash balance at the beginning of September is $9,000. b. Actual sales for July and August and expected sales for September are as follows: a. Cash sales Sales on account.. Total sales.............. July August September $ 6,500 $ 5,250 $ 7,400 20,000 30,000 40,000 $26,500 $35,250 $47.400 Sales on account are collected over a three-month period as follows: 10% collected in the month of sale, 70% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible. c. Purchases of inventory will total $25,000 for September. Twenty percent of a month's inventory purchases are paid for during the month of purchase. The accounts payable remaining from August's inventory purchases total $16,000, all of which will be paid in September. d. Selling and administrative expenses are budgeted at $13,000 for September of this amount, $4,000 is for depreciation. e Equipment costing $18,000 will be purchased for cash during September, and dividends totaling $3,000 will be paid during the month. f. The company maintains a minimum cash balance of $5,000. An open line of credit is available from the company's bank to bolster the cash balance as needed. Required: I. Prepare a schedule of expected cash collections for September. 2. Prepare a schedule of expected cash disbursements for inventory purchases for September. 3. Prepare a cash budget for September. Indicate in the financing section any borrowing that will be needed during September. Assume that any interest will not be paid until the following month. Verona Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well offering PROBLEM 8-19A More Than One Cost Driver (LO2, LO3] takeout and free home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers the number of pizzas sold and the number of deliveries made. Data concerning the pizzeria's costs appear below: Fixed Cost Cost per Cost per per Month Pizza Delivery $4.20 $5,870 $590 $0.10 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous. $2.90 $1.30 $610 $384 $1.790 $710 $0.05 In October, the pizzeria budgeted for 1,500 pizzas at an average selling price of $13.00 per pizza and for 200 deliveries. Data concerning the pizzeria's operations in October appear below: Actual Results Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 1,600 180 $21,340 $6,850 $5,810 $875 $522 $982 $384 $1.790 $778 Required: 1. Compute the revenue and spending variances for the pizzeria for October 2. Explain the revenue and spending variances

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