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 Cost of goods sold: Beginning inventory Purchases Cost of goods available for sale Gross profit Less: Ending inventory Cost of goods sold Operating expenses $ 29,350 $ 12,950 10,700 Operating income $ 2,250 $ 3,810 September $ 42,300 October $54,500 November $ 68,000 December $ 59,100 $ 14,090 44,000 $ 6,240 37,200 $ 43,440 (14,090) $ 58,090 (20,600) $ 37,490 $ 17,010 13,200 $ 20,600 48,500 $ 69,400 (21,760) $ 47,640 $ 20,360 14,200 $ 21,760 33,200 $ 54,960 (20,440) $ 34,520 $ 24,580 16,600 $ 7,980 $ 6,160 Cash on hand August 31 is estimated to be $40,230. Collections of August 31 accounts receivable were estimated to be $17,270 in September and $15,450 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $23,980 Required: 6-1. 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 October November $ 0 $ September operating expenses October operating expenses November operating expenses Total cash disbursements S 0 $ 0 Ending cash $ 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 $ 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 $ 05 0 0