Problem $4-24($Static$)$ Cash budget $[$LO$4-2]$

Graham Potato Company has projected sales of $$12,000$ in September, $$15,000$ in October, $$22,000$ in November,

and $$18,000$ in December. Of the company's sales, $30$ percent are paid for by cash and $70$ percent are sold on

credit. Experience shows that $40$ percent of accounts receivable are paid in the month after the sale, while the

remaining $60$ percent are paid two months after. Determine collections for November and December.

Also assume Graham's cash payments for November and December are $$18,500$ and $$11,000,$ respectively. The

beginning cash balance in November is $$5,000,$ which is the desired minimum balance.

a$.$ Prepare a cash receipts schedule for November and December.

b$.$ Prepare a cash budget with borrowing needed or repayments for November and December.

Note: Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance

is $$0.$ Leave no cells blank be certain to enter $0$ wherever required.