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 the cost is incurred In the subsequent month 75% 25% PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows: Sales September $ 42,000 October $ 54,000 November $ 68,000 December $ 59,000 Cost of goods sold: Beginning inventory Purchases $ 6,000 37,800 $ 14,400 44,000 Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross profit Operating expenses Operating income $ 43,800 (14,400) $ 29,400 $ 12,600 10,500 $ 58,400 (20,600) $ 37,800 $ 16,200 12,800 $ 20,600 48,900 $ 69,500 (21,900) $ 47,600 $ 20,400 14,300 $ 2,100 $ 3,400 $ 6,100 $ 21,900 33,100 $ 55,000 (20,000) $ 35,000 $ 24,000 16,100 $ 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. 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.) 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 October November $ 0 $ 0 $ 0 $ 0 0 $ 0 b-1. Assume now that PrimeTime 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.) Beginning cash Cash receipts: October sales November sales December sales January sales December January February Total cash receipts Cash disbursements: $ 0 $ 0 $ 0 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 $ 0 $ 0 $ 0 $ 0 $ 0 $