Required information [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 In the subsequent month 75% 25% PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows: Sales September $ 42,000 October $ 54,000 November $ 68,000 December $59,000 Cost of goods sold: Beginning inventory $ 6,000 Purchases 37,800 $ 14,400 44,000 Cost of goods available for sale $ 43,800 $ 58,400 Less: Ending inventory (14,400) Cost of goods sold $ 29,400 $ 37,800 Gross profit $ 12,600 $ 16,200 Operating expenses 10,500 Operating income $ 2,100 $ 3,400 $ 6,100 (20,600) 12,800 $ 20,600 48,900 $ 69,500 (21,900) $47,600 $ 20,400 14,300 $ 21,900 33,100 $ 55,000 (20,000) $ 35,000 $ 24,000 16,100 $ 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. Next > S Required: a. Prepare a cash budget for September. Beginning cash Cash receipts: August 31 accounts receivable Total cash receipts Cash disbursements: September purchases September $ 40,000 20,000 0 $ 20,000 69 $ Total cash disbursements Ending cash 69 0 0 0 0 $ 60,000