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: 49% in the month after the sale is made and 44% 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			$	54,100			$	68,100			$	59,400
Cost of goods sold:
Beginning inventory	$	6,010			$	14,120			$	20,340			$	22,080
Purchases		37,100				44,100				49,000				32,700
Cost of goods available for sale	$	43,110			$	58,220			$	69,340			$	54,780
Less: Ending inventory		(14,120	)			(20,340	)			(22,080	)			(20,140	)
Cost of goods sold	$	28,990			$	37,880			$	47,260			$	34,640
Gross profit	$	12,410			$	16,220			$	20,840			$	24,760
Operating expenses		11,000				13,300				14,500				16,300
Operating income	$	1,410			$	2,920			$	6,340			$	8,460

Cash on hand August 31 is estimated to be $39,920. Collections of August 31 accounts receivable were estimated to be $17,110 in September and $15,240 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,460. 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.)

	October	November
Beginning cash	$(12,560)
Cash receipts:
August 31 accounts receivable	15,240
September sales
October sales
November sales
Total cash receipts	$15,240	$0
Cash disbursements:
September purchases
October purchases
November purchases
September operating expenses
October operating expenses
November operating expenses
Total cash disbursements	$0	$0
Ending cash	$2,680	$0

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.)

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