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 73 % In the subsequent month 27 % 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 $ 41,400 $ 53,500 $ 67,600 $ 58,900 Cost of goods sold: Beginning inventory $ 5,770 $ 14,830 $ 21,000 $ 22,310 Purchases 37,400 44,300 48,700 32,800 Cost of goods available for sale $ 43,170 $ 59,130 $ 69,700 $ 55,110 Less: Ending inventory (14,830 ) (21,000 ) (22,310 ) (19,690 ) Cost of goods sold $ 28,340 $ 38,130 $ 47,390 $ 35,420 Gross profit $ 13,060 $ 15,370 $ 20,210 $ 23,480 Operating expenses 10,200 12,400 14,900 15,900 Operating income $ 2,860 $ 2,970 $ 5,310 $ 7,580 Cash on hand August 31 is estimated to be $39,600. Collections of August 31 accounts receivable were estimated to be $18,080 in September and $15,020 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,290. 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.)

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.)

October November 0 $ 0 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 0 $ 0 EA EA 0 0 0 December January February $ 0 $ 0 $ 0 Beginning cash Cash receipts: October sales November sales December sales January sales Total cash receipts 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 Ending cash 0 $ $ 0 $ 0 $ Olo $ $ 0