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 78% In the subsequent month 22% 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 $ 42,700 $ 54,000 $ 67,600 $ 59,280 Cost of goods sold: Beginning inventory $ 5,910 S 14,150 44,000 S 58,150 (20,350 S 37,800 $ 16,200 13,100 $ 20,350 49,200 $ 69,550 (21,930) $ 47,620 $ 19,988 15,000 S 4,980 $ 21,930 33,100 $ 55,030 (20,020) $ 35,018 $ 24,190 16,e00 Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross profit Operating expenses Operating income 37,400 $ 43,318 (14,150) $ 29,160 $ 13,540 10,100 $ 3,440 $ 3,100 $ 8,190 Cash on hand August 31 is estimated to be $40,250. Collections of August31 accounts receivaple were estimated to be $17,950 in September and $15,100 in October Payments of August 31 accounts payable and accrued expenses in September were estimated to be $23,500 It isa negetive Required: a-1. Prepare a cash budget for October and November. (Beginning cesh should be Indicated with e minus sign amount.) November Next October Beginning Cesn Required: a-1. Prepare a cash budget for October and November. (Beginning cash should be Indicated wlth a minus sign If it is a negetlve 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 nces November operating expenses Total cash disbursements Ending cash e-2. What are the prospects for this company if its sales growth continues at a similar rate? O Prospects are good O Prospects are not good