Primelime Sportswear is a custom imprinter that began operations six months ago. Sales have exceoded manogensenty most optimistic projections Sales are made on account and collected as follows: 52% in the month after the sato is made anid 47x in the second month atter sale, Merchandise purchases and operating expenses are paid as follows: In the nonth during which the nerchandise is purchased or the cost is ancurred In the subsequent month 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 $39,710. Collections of June 30 accounts receivable were estimated to be $18,320 in july and $14,670 in August. Payments of June 30 accounts payable and accrued expenses in July were estimated to be $24,380. Required: a. 1. Prepare a castr budiget for August and Septembec 2. What are the prospects for this compony if its sales growth continues at a similar rate? b. 1. Assume now that PrimeTime Sportswear is a mature firm, and that the July to September data tepresent a seasonal peok in business. Prepare a cash budget for October, November, and December, assuming that the income statements for November and December are the same as October's 2. Can the cash budget be used to support a request to a bank for a seasonal loan? Complete this question by entering your answers in the tabs below. Primelime Sportswear is a custom imprinter that began operations six months ago. Sales have exceoded manogensenty most optimistic projections Sales are made on account and collected as follows: 52% in the month after the sato is made anid 47x in the second month atter sale, Merchandise purchases and operating expenses are paid as follows: In the nonth during which the nerchandise is purchased or the cost is ancurred In the subsequent month 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 $39,710. Collections of June 30 accounts receivable were estimated to be $18,320 in july and $14,670 in August. Payments of June 30 accounts payable and accrued expenses in July were estimated to be $24,380. Required: a. 1. Prepare a castr budiget for August and Septembec 2. What are the prospects for this compony if its sales growth continues at a similar rate? b. 1. Assume now that PrimeTime Sportswear is a mature firm, and that the July to September data tepresent a seasonal peok in business. Prepare a cash budget for October, November, and December, assuming that the income statements for November and December are the same as October's 2. Can the cash budget be used to support a request to a bank for a seasonal loan? Complete this question by entering your answers in the tabs below
