PrimeTime Sportswear is a custom imprinter that began operations sx months ago Sales have exceeded management's most optimistic projections Sales are made on account and Oollected as follows: 50% n the month after the sale is made and 45% 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 incumed In the subsequent month 72% 28% Prime Time Sportswears income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows September October November December Salas Cost of goods sold: Beginning inventory Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold 542.10053700 68,500 59,500 5 6,070 S 14,720 3 20,27021,850 44,370 3 3 69,37054,65 49,100 58.320 748 72020770121 850 10 200 20350 34.300 Gross proft 400TAT0 12 400 S 2250 S 3,250 14.70016.000 6,280 $9,200 Operating income Cash on hand August 31 is estimated to be $40,240. Collections of August 31 accounts receivable were estimated to be $19,530 in september and 514,740 in October. Payments ot August 31 accounts payable and accrued expenses in September were estimated to be $23,870 b-1. Assume now that PrimeTime Sportswear is a mature hirm, 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.) Beginning cash Cash receipts October sales November sales December sales January sales Total cash receipts Cash disburssments: November purchases December purchases February purchases Navember operating expenses January operating expenses February operating expenses Total cash disbursements Ending cash b-2. Can the cash budget be used to support a request to a bank for a seasonal loan? O No