Prime Time 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: 57% in the month after the sale is made and 46% in the second month after sale. Merchandise purchases and operating expenses are paid as follows: Prime Time Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm follows: Gross profit Operating expenses Operating income $ 11,999 11,082 $ 998 $ 16,470 12,700 $ 3,770 $ 19,200 $ 24,660 14,800 15,900 $4,400 58,760 Cash on hand August 31 is estimated to be $40.440. Collections of August 31 accounts receivable were estimated to be $18,330 in September and $15,460 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $23.510. Required: 6.1. Prepare a cash budget for October and November. (Beginning cash should be indicated with a minus signifit is negative amount.) October November tonning can Cash on hand August 31 is estimated to be $40.440. Collections of August 31 accounts receivable were estimated to be $18.330 in September and $15.460 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $23.510. Required: 8-1. Prepare a cash budget for October and November. (Beginning cash should be indicated with a minus sign it is a negative amount.) October November Beginning cash Cash receipts: August 31 accounts receivable September sales October sales November sales Total cash receipts Cash disbursements: September purchases October purchases November purchases September operating expenses October operating expenses November operating expenses Total cash disbursements Ending cash b-L Assume now that Prime Time Sportswear is a mature firm, and that the September November data represent a seasonal peak in business. Prepare a cash budget for December, January, and February, assuming that the income statements for January and February are the same as December's. (Beginning cash should be indicated with a minus sign If It is a negative amount.) December January February Beginning cash Canoeipla October sales November sales December sales January sales Total cash receipts Cash disbursements: November purchases December purchases January purchases February purchases November operating expenses December operating expenses January operating expenses February operating expenses Total cash disbursements Ending cash Prime Time 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: 51% in the month after the sale is made and 46% 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 78% In the subsequent month 223 Prime Time Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the fim follows: September $ 42,200 October $ 53,700 November $ 67,669 December 559,109 Sales Cost of goods sold: Beginning inventory Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross profit Operating expenses Operating income $ 6,340 38,409 $ 44,740 (14,530) $ 30,210 $ 11,990 11,000 $ 990 $ 14,530 43,500 $ 58,030 (20,880) $ 37, 238 $16,470 12,709 $ 3,770 $ 20,800 49,480 $ 70,200 (21,800) $ 48,400 $ 19,200 14,800 $ 4,480 $ 21,880 32,909 $ 54,700 (20,260) $ 34,440 $ 24,660 15,909 5 8,760 Cash on hand August 31 is estimated to be $40.440. Collections of August 31 accounts receivable were estimated to be $18,330 in September and $15.460 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $23.510 Required: -1. Prepare a cash budget for October and November (Beginning cash should be indicated with a minus sign if it is a negative amount.) October November Beginning cash