Budgeted Cash Receipts and Cash Payments:

Timpco, a retailer, makes both cash and credit sales (i.e., sales on open account). Informaiton regarding budgeted sales for the last quarter of the year is as follows:

	October	November	December
Cash Sales	$100,000.00	$120,000.00	$80,000.00
Credit Sales	$100,000.00	$150,000.00	$90,000.00
Total	$200,000.00	$270,000.00	$170,000.00

Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are collectible, 60% are collected in the month of sale; the remaining 40% are collected in hte month following the month of sale. Customers are granted a 1.5% discount for payment within 10 days of billing. Approximately 75% of collectible credit sales take advantage of the cash discount.

Inventory purchases each month are 100% of the cost of the following month's projected sales. (The gross profit rate for Tmpco is approximately 30%.) All merchandise purchases are made on credit, with 25% paid in the month of purchase and the remainder paid in the following month. No cash discounts for early payment are in effect.

Required:

1. Calculate the budgeted total cash recipts for November and December

2. Calculate budgeed cash payments for November and December (budgeted total sales for January of the coming year + $200,000).