Cash on hand August 31 is estimated to be $39,520. Collections of August 31 accounts receivable were estimated to be $18,290 in September and $15,400 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,210. Required: a-1. Prepare a cash budget for October and November. (Beginning cash should be indicated with a minus sign if it is a negative amount.) October November Beginning cash Cash receipts: August 31 accounts receivable September sales October sales 0 $ 0 November sales Total cash receipts Cash disbursements: September purchases October purchases November purchases September operating expenses October operating expenses Return October November $ 0 $ 0 Beginning cash Cash receipts: August 31 accounts receivable September sales October sales November sales Total cash receipts Cash disbursements: September purchases October purchases November purchases September operating expenses October operating expenses November operating expenses Total cash disbursements Ending cash $ 0 0 $ $ $ 0 0 Return b-1. Assume now that PrimeTime Sportswear is a mature firm, and that the September-November data represent a seasonal peak in business. Prepare a cash budget for December, January, and February, assuming that the income statements for January and February are the same as December's. (Beginning cash should be indicated with a minus sign if it is a negative amount.) > Answer is not complete. December January February Beginning cash Cash receipts: October sales November sales December sales January sales $ 0 $ 0 Total cash receipts Cash disbursements: November purchases December purchases January purchases February purchases 0 $ January purchases February purchases November operating expenses December operating expenses January operating expenses February operating expenses Total cash disbursements Ending cash $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 b-2. Can the cash budget be used to support a request to a bank for a seasonal loan? Yes O No Return 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 merchandise is purchased or the cost is incurred In the subsequent month 77% 23% PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows: September $ 41,600 October $ 54,300 November $ 68,200 Sales December $ 59,000 $ 21,930 Cost of goods sold: Beginning inventory $ 14,030 $ 21,100 6,500 37,400 Purchases 44,000 $ 58,030 Cost of goods available for sale. $ 43,900 Less: Ending inventory 49,200 $ 70,300 (21,930) $ 48,370 $ 19,830 14,800 (14,030) $ 29,870 $ 11,730 10,200 $ 1,530 (21,100) $36,930 $ 17,370 12,700 Cost of goods sold 32,600 $ 54,530 (20,090) $ 34,440 $ 24,560 15,900 Gross profit Operating expenses Operating income. $ 4,670 $ 5,030 $ 8,660 Cash on hand August 31 is estimated to be $39,520. Collections of August 31 accounts receivable were estimated to be $18,290 in September and $15,400 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to
