6. The Amber Magic Shoppe has forecast its sales revenues and purchases for the last 5 months of 2005 to be as follows: 5o7 collecte of 1mn th Rern.coll nnthscytzz Sales Purchases Purchases sal August September October November December 22,000 17,000 15,000 19,500 25,000 29,000 30,000 20,000 26,000 24,000 Sixty percent of sales are on credit. On the basis of past experience, 50%of the accounts receivable are collected the month after the sale and the remainder are collected 2 months after the sale. Purchases are paid 30 days after they are incurred. The firm has a cash balance of $5,000 on hand as of October 31. A) Prepare a schedule of cash receipts for October, November, and December. B) B) Prepare a cash budget for the same period. (22 marks) (15 marks) 7. The following data have been selected from the annual report of Graphic Chips Limited (24 marks) ales EBI 80% on credit 250 400 1,200 1,750 140 300 800 ommon Shares Net Income Long-Term Debt Retained Earnings Required: a, Gross Profit Margin (3 marks) GP: Sales COGS 7)