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: 48% in the month after the sale is made and 43% 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% 25% 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 $41,300 $54,200 $ 68,100 59,200 Sales Cost of goods sold $ 6,000 14,660 S 20,720 22,190 Beginning inventory Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold 44,300 _49,000 33.300 38,100 $ 44,100 58,960 S 69,720 55,490 (14,660) (20,720) (22.190 (20,350) $29,440 38,240 $ 47,53035,140 $11,860 15,960 20,570 24,060 Gross profit Operating expenses Operating income 14,800 15,900 $ 1,660 3,460 5,770 8,160 10,200 12,500 Cash on hand August 31 is estimated to be $40,130. Collections of August 31 accounts receivable were estimated to be $20,070 in September and $15,470 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,030 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 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 $% 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.) December January February 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