The following data has been gathered from Time Co. to assist in the preparation of a cash budget for the fourth quarter of 2020.

Problem 7-4 Cash Collection COLLECTION OKT NOV DEC TOTAL * CASH SALES * CREDIT SALES AUG SEPTEMBER OCTOBER NOVEMBER DECEMBER Total Credit Sales 0 0 O ** Total Cash Collection 0 0 0 0 Cash Payment 2 DISBURSEMENT OKT NOV DEC TOTAL * DIRECT MATERIAL PURCHASES SEPT 0 OKT 0 NOV 0 DEC 0 Total Cash Disbursement 0 0 0 0 3 CASH BUDGET OKT NOV DEC TOTAL Beginning Cash Balance 0 * Total Cash Collection 0 0 0 0 * Cash Disbursent Purchasing Material Interest Payment O 0 O Purchasing Supplies 0 * Cash Borrowing Ending Cash Balance 0 0 0 OProblem 7 - 4 The following data has been gathered from Time Co. to assist in the preparation of a cash budget for the fourth quarter of 2020. i. The projected sales and the projected direct material purchases. Month Sales Purchase (in dollar amount] (in kgs] August 22,000 3,000 September 22,800 3,200 October 25,600 3,400 November 26,000 3,800 December 28,400 4,000 ii. Each month, 30% of sales are for cash and the remaining are on credit. The collection pattern for credit sales is 40% in the month of sale, 35% in the following month, and 20% in the second month following the sale. The company record bad debt expense every month. ili. The company purchased direct materials on account. The purchase price per kg is $7. Company pays 70% of accounts payable in the month of purchase and get a 5% discount. The remaining is paid for in the following month. iv. The company borrowed $80,000 from bank since January 1, 2018. The borrowing period was 5 years. The annual interest rate was 10%. The company paid interest expense quarterly. V. On October 30, new supplies will be purchased for $8,000 on cash. vi. The cash balance on September 30 is $25,000. vil. A minimum cash balance is required for the end of each quarter of $25,000. Money can be borrowed $10,000 on the next beginning of quarter, interest is 10% per year and pay annually. Required: Prepare a cash budget for the fourth quarter of 2020. Give a supporting schedule that details the cash collections from sales and the cash payment for direct materials purchase