Graham Potato Company has projected sales of $13,800 in September, $16,500 In October, $23,800 In November,...

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Graham Potato Company has projected sales of $13,800 in September, $16,500 In October, $23,800 In November, and $19,800 In December. Of the company's sales, 25 percent are paid for by cash and 75 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham's cash payments for November and December are $20,000 and $12,500, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December. Sales Credit sales Cash sales One month after sale Two months after sale Total cash receipts Answer is complete and correct. Graham Potato Company Cash Receipts Schedule September October November December $ 13,800 $ 16,500 $ 23,800 $ 19,800 10,350 12,375 17,850 14,850 $ 5,950 $ 4,950 4,950 7,140 6,210 7,425 $ 17,110 19,515 b. Prepare a cash budget with borrowing needed or repayments for November and December. Note: Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is $0. Leave no cells blank be certain to enter O wherever required. Answer is complete but not entirely correct. Graham Potato Company Cash Budget November December Total cash receipts Total cash payments $ 17,110 $ 20,000 19,515 12,500 Net cash flow $ 37,110 $ 32,015 Beginning cash balance 5,000 5,000 Cumulative cash balance $ 42,110 $ 37,015 Monthly borrowing (repayment) 2,890 2,890 Ending cash balance $ 45,000 $ 39,905 Cumulative loan balance $ 2,890 $ 0 Graham Potato Company has projected sales of $13,800 in September, $16,500 In October, $23,800 In November, and $19,800 In December. Of the company's sales, 25 percent are paid for by cash and 75 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham's cash payments for November and December are $20,000 and $12,500, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December. Sales Credit sales Cash sales One month after sale Two months after sale Total cash receipts Answer is complete and correct. Graham Potato Company Cash Receipts Schedule September October November December $ 13,800 $ 16,500 $ 23,800 $ 19,800 10,350 12,375 17,850 14,850 $ 5,950 $ 4,950 4,950 7,140 6,210 7,425 $ 17,110 19,515 b. Prepare a cash budget with borrowing needed or repayments for November and December. Note: Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is $0. Leave no cells blank be certain to enter O wherever required. Answer is complete but not entirely correct. Graham Potato Company Cash Budget November December Total cash receipts Total cash payments $ 17,110 $ 20,000 19,515 12,500 Net cash flow $ 37,110 $ 32,015 Beginning cash balance 5,000 5,000 Cumulative cash balance $ 42,110 $ 37,015 Monthly borrowing (repayment) 2,890 2,890 Ending cash balance $ 45,000 $ 39,905 Cumulative loan balance $ 2,890 $ 0