most optimistic projections. Sales are made on account and collected as follows: 50% in the month after the sale is made and 45% 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 70% In the subsequent month 308 PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows: Cash on hand June 30 is estimated to be $40,420. Collections of June 30 accounts receivable were estimated to be $18,310 in July and $15,250 in August. Payments of June 30 accounts payable and accrued expenses in July were estimated to be $24,070. Required: a. 1. Prepare a cash budget for August and September. 2. What are the prospects for this company if its sales growth continues at a similar rate? h 1 Aecuma nnw that DrimeTime Snnitcwear ic a mature firm and that the lilu in Cantamher data ranrecont a sanconal Prepare a cash budget for August and September. Note: Beginning cash should be indicated with a minus sign if it is a negative amount. most optimistic projections. Sales are made on account and collected as follows: 50% in the month after the sale is made and 45% 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 70% In the subsequent month 308 PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows: Cash on hand June 30 is estimated to be $40,420. Collections of June 30 accounts receivable were estimated to be $18,310 in July and $15,250 in August. Payments of June 30 accounts payable and accrued expenses in July were estimated to be $24,070. Required: a. 1. Prepare a cash budget for August and September. 2. What are the prospects for this company if its sales growth continues at a similar rate? h 1 Aecuma nnw that DrimeTime Snnitcwear ic a mature firm and that the lilu in Cantamher data ranrecont a sanconal Prepare a cash budget for August and September. Note: Beginning cash should be indicated with a minus sign if it is a negative amount