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 tollows: 80% 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 PrimeTime Spornswears income statement budget for each or the next four months, newiy revised to reflec: the suocess of the fim, follows 5 42 100 537006500 559 500 Cost of goods sold: $ 6,070 14,720 20 270 5 21,850 Purchases Cost af gaods available for salk 38,300 $ 44 370 58,320 $ 69 370 S 54 550 Cost af gaods sold 12,400 S 2,250 3,250 6.280 S 9,200 Cash on hand August 31 is estimated to be 540,240. Collections ot August 31 accounts receivable were estimated to be $19,530 in September and 514,740 in October. Payments ot August 31 accounts payable and accrued expenses in September were estimated to be 523,370 Required: 3-1. 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 recejpts: August 31 accounts receivable Septamber sales Octobar sales November sale November purchases Septambar aperating expanses October operating expenses Total cagh disbursements a-2. What are the prospects tor this company it its sales growth continues at a similar rate? O Prospects are good Prospacts are not