Question

can you please help in the same order as mine?

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: 50% in the month after the sale is made and 45% 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 73% 27% PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm. follows: September $ 42,408 October $ 54,000 November 567/798 December $ 58 900 Sales Cost of goods sold: Beginning inventory Purchases Cost of goods available for sale Less! Ending inventory Cost of goods sold Gross profit Operating expenses Operating income $ 6,350 38.600 $ 44,950 (14,958) $ 38,00 $ 12.900 10 900 $ 1,5 $ 14,950 44.480 $ 59,350 20360 8990 $ 15,018 12,500 2,118 20,368 49,200 $ 69,560 21.920) $ 47,640 $ 20,5 14 100 $ 5,960 $ 21,920 33.30 $ 55,220 119,820 5 35,400 $ 23,500 15.900 $2,600 Cash on hand August 31 is estimated to be $39,900. Collections of August 31 accounts receivable were estimated to be $17.320 in September and $14760 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,320. Required: 2-1. Prepare a cash budget for October and November. (Beginning cash should be indicated with a minus sign If It Is a negative amount.) X Answer is not complete, October November

Answer 1

PrimeTime Sporstwear a-1. Cash Budget for October and November October $32,900 November Working for October Working for November $13,666 $14,760 $21,200 $0 $0 $35,960 $0 $19,080 ($42,400*50%) $27,000 $0 $46,080 ($42,400*45%) ($54,000*50%) 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 ($44,400*27%) ($49,200*73%) $10,422 $32,412 $0 $2,943 $9,417 $0 $55,194 $13,666 $0 ($38,600*27%) $11,988 ($44,400*73%) $35,916 $0 ($10,900*27%) $3,483 ($12,900*73%) $10,293 $61,680 -$1,934 ($12,900*27%) ($14,100*73%)

Working for December Working for January Working for February December -$1,934 January $3,209 February $13,924 $24,300 $33,850 $0 $0 $58,150 $0 $30,465 $29,450 $0 $59,915 $0 ($54,000*45%) $0 ($67,700*50%) $26,505 $29,450 $55,955 ($67,700*45%) ($58,900*50%) ($58,900*45%) ($58,900*50%) b-1. Beginning Cash (a) Cash receipts: October sales November sales December sales January sales Total cash receipts (b) Cash disbursements: November purchases December purchases January purchases February purchases November operating expenses December operating expenses January operating expenses February operating expenses Total cash disbursements (c) Ending cash (a) + (b)-(c) ($33,300*27%) ($33,300*73%) ($33,300*27%) ($33,300*73%) $13,284 $24,309 $0 $0 $3,807 $11,607 $0 $0 $53,007 $3,209 $0 $8,991 $24,309 $0 $0 $4,293 $11,607 $0 $49,200 $13,924 $0 ($49,200*27%) $0 ($33,300*73%) $8,991 $24,309 $0 ($14,100*27%) $0 ($15,900*73%) $4,293 $11,607 $49,200 $20,679 ($15,900*27%) ($15,900*73%) ($15,900*27%) ($15,900*73%) Working Notes: 1 Determination of Beginning cash balance of October Cash on Hand August 31 $39,900 Add: Cash receipts in September $17,320 $57,220 Less: Cash payments in September $24,320 Cash on Hand September 30 $32,900