ces Required information [The following information applies to the questions displayed below.] PrimeTime Sportswear is a custom imprinter that began operations six months ago. Sales have exceeded management's most optimistic projections. Sales are made on account and collected as follows: 51% in the month after the sale is made and 46% in the second month after sale. Merchandise purchases and operating expenses are paid as follows: In the month during which the merchandise is purchased or the cost is incurred In the subsequent month 73% 27% PrimeTime Sportswear's Income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows: Sales Cost of goods sold: Beginning inventory Purchases Cost of goods available for sale. Less: Ending inventory Cost of goods sold $ 30,480 Gross profit Operating expenses Operating income $ 10,920 10,900 $ 17,150 12,900 S 20 $ 4,250 September $ 41,400 October $ 54,400 November $ 68,000 December $ 59,400 $ 6,210 $ 14,030 44,200 38,300 $ 44,510 (14,030) $ 58,230 (20,980) $ 37,250 $ 20,980 48,800 $ 69,780 (22,100) $ 47,680 $ 22,100 33,600 $55,700 (20,160) $35,540 $ 23,860 16,300 $ 7,560 $ 20,320 14,700 $ 5,620 Cash on hand August 31 is estimated to be $39,680. Collections of August 31 accounts receivable were estimated to be $20,300 in September and $15,390 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,210.