PART ONE COMPLETED - NEED HELP WITH PART TWO
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: 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 cost is incurred: 75% In subsequent month 25%
PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows: Sept Oct Nov Dec
Sales	$42,000	$54,000	$68,000	$59,000
Cost of goods sold:
Beginning inventory	$6,000	$14,400	$20,600	$21,900
Purchases	37800	44000	48900	33100
Cost of goods available for sale	$43,800	$58,400	$69,500	$55,000
Less: Ending inventory	-14,400	-20600	-21900	-20000
Cost of goods sold	$29,400	$37,800	$47,600	$35,000
Gross profit	$12,600	$16,200	$20,400	$24,000
Operating expenses	10500	12800	14300	16100
Operating income	$2,100	$3,400	$6,100	$7,900
Cash on hand August 31 is estimated to be $40,000. Collections of August 31 accounts receivable were estimated to be $20,000 in September and $15,000 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,000.
					PART ONE
	Oct	Nov
Beginning cash	-225	-18900
Cash receipts:
Aug 31 Accounts receivable	15000	0
Sept sales	21000	18900
Oct sales	0	27000
Nov sales	0	0
Total cash receipts	36000	45900
cash dispersements:
Sept purchases	9450	0
Oct purchases	33000	11000
Nov Purchases	0	36675
Sept Operating expenses	2625	0
Oct Operating expenses	9600	3200
Nov Operating expenses	0	10725
Total cash dispersements	54675	61600
Ending cash	-18900	-34600
Assume now that PrimeTime Sportswear is a mature firm, and that the September