Problem 4 Required: A) Prepare a schedule of cash receipts for October, November, and December. B) Prepare a cash budget for the same period. Top Shoppe has forecast its sales revenues and purchases for the last 5 months of 20x5 to be as follows: August September October November December Sales $22,000 15,000 25,000 30,000 26.000 Purchases $17,000 19.500 29,000 20,000 24.000 Sixty percent of sales are on credit. On the basis of past experience, 50% of the accounts receivable are collected the month after the sale and the remainder are collected 2 months after the sale Purchases are paid 30 days after they are incurred. The firm has a cash balance of $5,000 on hand as of October 31, but its minimum required cash balance is $4,000 Problem 4 Required: A) Prepare a schedule of cash receipts for October, November, and December. B) Prepare a cash budget for the same period. Top Shoppe has forecast its sales revenues and purchases for the last 5 months of 20x5 to be as follows: August September October November December Sales $22,000 15,000 25,000 30,000 26.000 Purchases $17,000 19.500 29,000 20,000 24.000 Sixty percent of sales are on credit. On the basis of past experience, 50% of the accounts receivable are collected the month after the sale and the remainder are collected 2 months after the sale Purchases are paid 30 days after they are incurred. The firm has a cash balance of $5,000 on hand as of October 31, but its minimum required cash balance is $4,000