BUSN: 278

mework Help Problem 4-24 (Algo) Cash budget [LO4-2] Graham Potato Company has projected sales of $19,200 in September, $21,000 in October. $29.200 in November. and $25.200 in December Of the company's sales. 20 percent are paid for by cash and 80 percent are sold on credit. 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. Determine collections for November and December. Also assume Graham's cash payments for November and December are $24.500 and $17.000, respectively. The beginning cash balance in November is $5.000. which is the desired minimum balance a. Prepare a cash receipts schedule for November and December. Graham Potato Company Cash Receipts Schedule September October November December Sales $ 19,200 $ 21,000 $ 29,200 $ 26,200 Credit sales 23,360 20,160 Cash sales $ 5,840 5,040 One month after sale Two months after sale Total cash receipts $ 5,840 $ 5,040 Prey 6 of 9 Next > M N Wb. Prepare a cash budget with borrowing needed or repayments for November and December. Note: Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is 30. Leave no cells blank be certain to enter 0 wherever required. 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 $ Cumulative loan balance