Show Work: The Graham Potato Company has projected sales of $$6,000$ in September, $$10,000$ in October,

$$16,000$ in November, and $$12,000$ in December. Of the company$$s sales, $20$ percent are paid for by cash and $80$ percent are sold on credit. Experience shows that $40$ percent of accounts

receivable are paid in the month after the sale, while the remaining $60$ percent are paid two

months after. Determine collections for November and December.

Also assume Graham$$s cash payments for November and December are $$13,000$ and $$6,000,$

respectively. The beginning cash balance in November is $$5,000,$ which is the desired minimum

balance. Prepare a Cash Budget with borrowing needed or repayments for November and

December. $($You will need to prepare the Cash Receipts Schedule first.$)$

Graham Potato Company

Cash Receipts Schedule

September

October

November

December

Sales

$$6,000$

$$10,000$

$$16,000$

$$12,000$

Credit sales

$(80\%)$

Cash sales

$(20\%)$

Collections

in month

after sales

$(40\%)$

Collections

two months

after sales

$(60\%$

Total cash

receipts

$2$

Graham Potato Company

Cash Budget

November

December

Cash Receipts

Cash Payment

$13,000$

$6,000$

Net Cash Flow

Beginning Cash Balance

$5,000$

Cumulative Cash Balance

Monthly Loan or $($Repayment$)$

Cumulative Loan Balance

Ending Cash Balance