Problem 14-20 Cash budget-part 2 LO 4,8 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: 52% in the month after the sale is made and 47% 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 71% 29% 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 Cost of goods sold $42,600 53,800 67,900 S 59,500 $ 5,540 14,730 $20,980 21,920 33,200 $44,240 58,730 69,880 55,120 20,120 Beginning inventory 38,700 44,000 48,900 Cost of goods available for sale Less: Ending inventory Cost of goods sold 14,730 29,510 20,980 21,920 37.(50 $ 47,960 $35,000 Gross profit Operating expenses $ 13,090 $ 16,050 $19,940 24,500 16,200 $ 2,1903,550 $ 5,440 8,300 10,900 12,500 14,500 Operating income Cash on hand August 31 is estimated to be $39,820. Collections of August 31 accounts receivable were estimated to be $19,520 in September and $14,540 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,320