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December. Cash saies are 20 percent and credir sales are 80 percent of total sales. Histonically, 40 percent of receivables are collected in the month
December. Cash saies are 20 percent and credir sales are 80 percent of total sales. Histonically, 40 percent of receivables are collected in the month after the sale, and the remaining 60 percent collected two months after. Assume that the company's cash payments for November are $13,000, and December $6,000. 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. b. Prepare a cash budget with borrowing needed or repayments for November and December. (Do not leave any empty spaces; input - o wherever it is required. Amount to be deducted should be indicoted with minus sign.)
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