Use the following information to prepare the september cash budget for pto co. the following information relates to expected cash receipts and cash payment for the month ened september 30 1. Beginning cash balance, September 1, $47,000.
2. Budgeted cash receipts from sales in September, $258,000.
3. Raw materials are purchased on account. Purchase amounts are August (actual), $76,000, and September (budgeted), $108,000. Payments for direct materials are made as follows: 65% in the month of purchase and 35% in the month following purchase.
4. Budgeted cash payments for direct labor in September, $35,000.
5. Budgeted depreciation expense for September, $3,800.
6. Other cash expenses budgeted for September, $51,000.
7. Accrued income taxes payable in September, $10,700.
8. Bank loan interest payable in September, $1,400.

Richardson hired j. c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j. c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."