Graham Potato Company has projected sales of $9,000 in September, $12,500 in October, $19,000 in November, and $15,000 in December. Of the company's sales, 30 percent are paid for by cash and 70 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 $16,000 and $8,500, 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 Sales Credit sales Cash sales One month after sale Two months after sale Total cash receipts October November December 9,000 $ 12,500 $ 19,000 $ 15,000 6,300 8,750 13,300 10,500 $ 5,700 S 4,500 3.500 5,320 3,780 5,250 $ 12,980 15,070 b. Prepare a cash budget with borrowing needed or repayments for November and December. (Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is $0.) Graham Potato Company Cash Budget November December Total cash receipts S 12,980 S 15,070 Total cash payments 16,000 8,500 Net cash flow S 28,980 S 23,570 Beginning cash balance 5,000 5,000 Cumulative cash balance S 33,980 $ 28,570 Monthly borrowing (repayment) 3,020 (3,020) Ending cash balance S 37,000 S 25,550 Cumulative loan balance S 3,020