Required information Problem 14-21 (Algo) Cash budget-part 1 LO 14-4, 14-7 [The following information applies to the questions displayed below.] 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: $ 20,550 49,400 $ 21,910 33,100 Sales July $ 42,800 August September $ 54,100 $ 67,800 October $ 58,600 Cost of goods sold: Beginning inventory Purchases $ 5,800 37,400 $ 14,380 44,000 Cost of goods available for sale $ 43,200 Less: Ending inventory Cost of goods sold (14,380) $ 58,380 (20,550) Gross profit Operating expenses $ 28,820 $ 13,980 11,000 $ 37,830 $ 16,270 12,300 $ 2,980 $ 3,970 $ 4,960 Operating income $ 69,950 (21,910) $ 48,040 $ 19,760 14,800 $ 55,010 (20,090) $ 34,920 $ 23,680 16,300 $ 7,380 Cash on hand June 30 is estimated to be $40,390. Collections of June 30 accounts receivable were estimated to be $20,100 in July and $14,750 in August. Payments of June 30 accounts payable and accrued expenses in July were estimated to be $24,240. Problem 14-21 (Algo) Part a Required: a. Prepare a cash budget for July. Beginning cash Cash receipts: July Total cash receipts $ 0 Cash disbursements: Total cash disbursements $ 0 Ending cash $ 0