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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
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: 49% in the month after the sale is made and 44% in the second month after sale. Merchandise purchases and operating expenses are paid as follows: In the nonth during which the nerchandise is purchased or the cost is incurred 748 In the subsequent month 264 PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows: Cash on hand June 30 is estimated to be $39,700. Collections of June 30 accounts recelvable were estimated to be $19,750 in July and $15,410 in August. Payments of June 30 accounts payable and accrued expenses in July were estimated to be $24,320. Problem 14-21 (Algo) Part a Required: a. Prepare a cash budget for July
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