[The following information applies to the questions displayed below.] PrimeTime

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[The following information applies to the questions displayed below.]

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:

  

  

PrimeTime Sportswear's income statement budget for each of the next four months, newly revised to reflect the success of the firm, follows:

  

  

Cash on hand August 31 is estimated to be $39,770. Collections of August 31 accounts receivable were estimated to be $20,420 in September and $15,400 in October. Payments of August 31 accounts payable and accrued expenses in September were estimated to be $24,390.

Required: Prepare a cash budget for september

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:

Explanation / Answer

Cash Budget for Sepember:

$ Beginning cash 39,770 Cash receipts 20,420 Total cash available 60,190 Cash disbursements Accounts payable and accrued expenses of August 24,390 Merchandise purchases for September 27,020 Operating expenses for September 7,000 Total cash disbursements 58,410 Ending cash 1,780

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