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 Cash is collected form customers in the following manner: Month of sale 20% 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