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$15,000 in October, Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are
$15,000 in October, Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Dete Also assume Graham's cash payments for November and December are $18,500 and $11,000, respectively The beginning cash balance in November is $5,000, which is a. Prepare a cash receipts schedule for November and December t are paid for by cash and 70 perce rmine collections for November and December the desired minimum balance Graham Potato Company Cash Receipts Schedule September October November December Sales Credit sales Cash sales One month after sale Two months ater sale Total cash receipts b. Prepare a cash budget with borrowing needed or repayments for November and December (Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is so Graham Potato Company Cash Budget November December Total cash receipts Total cash payments Net cash flow Beginning cash balance Cumulative cash balance Monthly borrowing (repayment) Ending cash balance Cumuiative oan balance
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