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[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: 50% in the month after the sale is made and 45% 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	75	%
In the subsequent month	25	%

PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows:

	September				October				November				December
Sales	$	42,000			$	54,000			$	68,000			$	59,000
Cost of goods sold:
Beginning inventory	$	6,000			$	14,400			$	20,600			$	21,900
Purchases		37,800				44,000				48,900				33,100
Cost of goods available for sale	$	43,800			$	58,400			$	69,500			$	55,000
Less: Ending inventory		(14,400	)			(20,600	)			(21,900	)			(20,000	)
Cost of goods sold	$	29,400			$	37,800			$	47,600			$	35,000
Gross profit	$	12,600			$	16,200			$	20,400			$	24,000
Operating expenses		10,500				12,800				14,300				16,100
Operating income	$	2,100			$	3,400			$	6,100			$	7,900

Cash on hand August 31 is estimated to be $40,000. Collections of August 31 accounts receivable were estimated to be $20,000 in September and $15,000 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,000.

Required: a. Prepare a cash budget for September.

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