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Problem 4-24 (Static) Cash budget [LO4-2] Graham Potato Company has projected sales of $12,000 in September, $15,000 In October, $22,000 in November, and $18,000 in
Problem 4-24 (Static) Cash budget [LO4-2] 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 pald for by cash and 70 percent are sold on credit. Experlence shows that 40 percent of accounts recelvable are pald in the month after the sale, while the remaining 60 percent are pald 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, respectlvely. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash recelpts 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
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