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: 51% in the month after the sale is made and 46% 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	$	42,200			$	53,800			$	68,400			$	59,000
Cost of goods sold:
Beginning inventory	$	5,820			$	14,000			$	20,830			$	21,880
Purchases		38,200				44,000				48,500				33,500
Cost of goods available for sale	$	44,020			$	58,000			$	69,330			$	55,380
Less: Ending inventory		(14,000	)			(20,830	)			(21,880	)			(19,960	)
Cost of goods sold	$	30,020			$	37,170			$	47,450			$	35,420
Gross profit	$	12,180			$	16,630			$	20,950			$	23,580
Operating expenses		10,200				13,200				14,800				16,000
Operating income	$	1,980			$	3,430			$	6,150			$	7,580

Cash on hand August 31 is estimated to be $40,500. Collections of August 31 accounts receivable were estimated to be $17,670 in September and $15,350 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $23,970. 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	$31,880
Cash receipts:
August 31 accounts receivable
September sales
October sales
November sales
Total cash receipts	$0	$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	$31,880	$0

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