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: 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 In the subsequent month 74 268 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. Less: Ending inventory Cost of goods sold Gross profit Operating expenses Operating income September $41,500 October $53,800 November $ 67,600 $ 5,870 38,200 $ 44,070 (14,180) $14,180 43,800 $ 57,980 (20,130) $ 20,130 49,200 $ 69,330 (21,790) $ 29,890 $ 11,610 10,300 $ 37,850 $ 15,950 12,400 $ 47,540 $ 20,060 14,300 $ 1,310 $ 3,550 $ 5,760 December $59,100 $ 21,790 33,300 $ 55,090 (20,470) $ 34,620 $ 24,480 16,200 $ 8,280 Cash on hand August 31 is estimated to be $39,800. Collections of August 31 accounts receivable were estimated to be $16,510 in September and $15,330 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,400. 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.)