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: 49% in the month after the sale is made and 44% 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	79	%
In the subsequent month	21	%

PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows:

	September				October				November				December
Sales	$	41,900			$	54,000			$	67,800			$	58,800
Cost of goods sold:
Beginning inventory	$	5,600			$	14,420			$	20,410			$	22,280
Purchases		38,000				44,200				49,400				33,000
Cost of goods available for sale	$	43,600			$	58,620			$	69,810			$	55,280
Less: Ending inventory		(14,420	)			(20,410	)			(22,280	)			(20,340	)
Cost of goods sold	$	29,180			$	38,210			$	47,530			$	34,940
Gross profit	$	12,720			$	15,790			$	20,270			$	23,860
Operating expenses		10,300				13,200				14,500				16,300
Operating income	$	2,420			$	2,590			$	5,770			$	7,560

Cash on hand August 31 is estimated to be $39,960. Collections of August 31 accounts receivable were estimated to be $17,260 in September and $14,910 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,490. Required: a-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
Cash receipts:
August 31 accounts receivable
September sales
October sales
November sales
Total cash receipts	$0	$0
Cash disbursements:
September purchases
October purchases
November purchases
September operating expenses
October operating expenses
November operating expenses
Total cash disbursements	$0	$0
Ending cash	$0	$0

b-1. Assume now that PrimeTime Sportswear is a mature firm, and that the SeptemberNovember 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
Cash receipts:
October sales
November sales
December sales
January sales
Total cash receipts	$0	$0	$0
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	$0	$0	$0
Ending cash	$0	$0	$0