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: 51% in the month after the sale is made and 46% 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 75% 25% PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows: September $ 42,100 October November December Sales $ 53,700 $ 67,600 $ 59,300 Cost of goods sold: Beginning inventory Purchases $ 5,530 38,100 $ 43,630 (14,380) $ 29,250 $ 12,850 10,500 $ 2,350 $ 20,110 48,900 $ 69,010 (22,390) $ 46,620 $ 20,980 $ 22,390 $ 14,380 43,900 $ 58,280 (20,110) $ 38,170 $ 15,530 33,500 $ 55,890 Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross profit Operating expenses (20,080) $ 35,810 $ 23,490 16,500 $ 6,990 13,000 14,200 Operating income $ 2,530 $ 6,780 Cash on hand August 31 is estimated to be $39,730. Collections of August 31 accounts receivable were estimated to be $16,530 in September and $14,920 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,430. 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.) Answer is complete but not entirely correct. October November Beginning cash (4,570) OS (23,004) 8 Cash receipts: August 31 accounts receivable 14.920 O 21,471 O 19,366 O 27,387 O September sales October sales November sales Total cash receipts $ 36,391 46,753 Cash disbursements: September purchases $ 9,525 O $ 32,925 O 10,975 O 36.675 O October purchases November purchases 2,625 O September operating expenses October operating expenses 9,750 O 3,250 O November operating expenses 10,650 O $ 61,550 $ (37,801) Total cash disbursements $ 54.825 Ending cash S(23,004)