[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 month during which the merchandieo is purchased or the cost is incurred In the subsequent month 775 231 PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows: September $ 41,300 Octobor $ 54,300 November $ 67,900 December $ 59,400 Sales Coat of goods sold: Beginning inventory Purchases Coat of goods available for sale Less Ending inventory Coat of goods sold Gross profit Operating expenses Operating income $ 5,870 38,600 $ 44,470 (14,690) $ 29, 780 $ 11,520 10,400 $ 1,120 $ 14,690 43,500 $ 58,190 (20390) $ 37,800 $ 16,500 13,000 $ 3,500 $ 20,390 49,100 $ 69,490 (21,680 $ 47.810 $ 20,090 14,800 $ 5.290 $ 21,680 33, 100 $ 54,780 (20,070) $ 34,710 $ 24,690 16,200 $ 8,490 Cash on hand August 31 is estimated to be $39.700. Collections of August 31 accounts receivable were estimated to be $20,020 in September and $14,940 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $23,820. Required: a. Prepare a cash budget for September September Beginning cash Cash receipts: $ Total cash receipts Cash disbursements: 0 $ $ Total cash disbursements Ending cash Operating expenses Operating income 10,400 $ 1,120 13,000 $3,500 14,800 $ 5,290 16,200 $ 8,490 Cash on hand August 31 is estimated to be $39,700. Collections of August 31 accounts receivable were estimated to be $20,020 in September and $14,940 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $23,820. b. What is your advice to management of Primetime Sportswear? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Secure more finance through sale of bands Accelerate the collection of accounts receivable Slow down the collection of accounts receivable 2 Accelerate the payments of accounts payable 2 slow down the payment of accounts payable