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 In the subsequent month 72% 28% 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 54,400 Sales Cost of goods sold: S67,500 $ 59,200 Beginning inventory Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold $6,050 $14,000 S 20,320 22,190 33,500 $43,050 58,000 S 69,620 55,690 310 $29,050 37,680 $ 47,430 35,380 $12,250 16,720 S 20,070 23,820 16,300 2,050 3,520 S 5,670 7,520 37,000 44,000 49,300 14,000 320 22,1 Gross proft Operating expenses Operating income 1020U 13,200 4,400 Cash on hand August 31 is estimated to be $40,350. Collections of August 31 accounts receivable were estimated to be $19,710 in September and $14,820 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,010. 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 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