The following information pertains to Maxi Corporation:

Month Sales Purchases

July $40,000 $20,000

August 30,000 15,000

September 20,000 10,000

October 50,000 25,000

November 60,000 30,000

December 70,000 35,000

Cash is collected from customers in the following manner:

Month of sale 20%

Month following the sale 50%

Two months following sale 28%

Amount uncollectible 2%

Thirty percent 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 purchases paid for in the month of purchase.

Labor costs equal 20% of sales; other operating costs of $5,000 per month (including $2,000) of depreciation. Both are paid in the month incurred.

The cash balance on October 1 is $4,300. A minimum cash balance of $4,000 is required at the end of the month. Money is borrowed in multiples of $1,000.

The company will issue $6,000 of common stock and pay $10,000 in dividends in October.

There is no debt outstanding at October 1.

Needed

projected cash flow statement in good form for the month ended October 31.