Graham Potato Company has projected sales of $7,200 in September, $11,000 in October, $17,200 in November, and $13,200 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 $-14,500 and $-7,000, respectively. The beginning cash balance in November is $5,000 $5,000, which is the desired minimum balance. There is no bank loan outstanding at the beginning of November.

A. Prepare a cash receipts schedule for November and December: (enter all numbers as positive whole numbers) Sep $7,200 Oct $11,000 Nov $17,200 Dec $13,200 Total sales Credit sales $ Cash sales One month after the sale Two months after the sale Total cash receipts $ $ B. Prepare a cash budget with borrowing needed or repayments for November and December: (negative numbers should be indicated by a minus sign) Nov Dec $ $ Cash Budget Cash receipts Cash payments (enter as a negative amount) Net cash flow (use a minus sign for negative amounts) Beginning cash balance Cumulative cash balance Monthly borrowing (repayment) (enter borrowing as positive, repayment as negative) Ending cash balance 5,000 $ $ Dec Nov $0 $ Bank Loan Beginning loan balance Monthly borrowing (repayment) (enter borrowing as positive, repayment as negative) Ending loan balance $ $