The following information pertains to Happy Tee Co.: Month July August September Sales P40,000 30,000 20,000 Purchases P20,000 15,000 10,000 Management Accounting RCROQUE Page 7 October November December 50,000 60,000 70,000 25,000 30,000 35,000 . 20% Cash is collected form customers in the following manner: Month of sale Month following the sale 50% Two months following sale 28% Amount uncollectible 2% . 30% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. A 2% discount is allowed on cash paid out at the time of purchase. . Labor costs are 20% of sales. Other operating costs are P5,000 per month (including P2,000 of depreciation). Both of these are paid in the month incurred. The cash balance on October 1 is P4,300. A minimum cash balance of P4,000 is required at the end of the month. Money can be borrowed in multiples of P1,000. Finally, the firm will issue P6,000 of common stock and pay out P10,000 on dividends in October Prepare a projected cash flow statement in good form for the month of October. Use the format below: CASH BUDGET FOR THE MONTH OF OCTOBER Beginning cash balance Add: Cash collections * Total cash available Less: Total Cash disbursements & minimum cash requirement Total Disbursements Add: Minimum cash balance required Total Cash needed Cash excess (deficit) Financing Borrowing Repayments Total cash form financing Ending cash balance *Schedule of cash collections Cash sales Add: Collections form prior month: Total Collections