Activision Inc. is a gaming software developer. $10\%$ of Activision$$s sales are cash and collected in the same month. The remaining $90\%$ are on credit and collected one month after the purchase. Total wages for Activision is $$20$M per month. Cost of goods sold $($packaging$)$ is equal to $10\%$ of sales. Packaging materials are purchased one month ahead of sales and are paid one month after receipt. Activision started November with a cash balance of $$10$M$.$ Activision$$s sales are shown in the following table.

Activision Inc.

Sales Forecast $($$M$)$

Month Sales

September $$40$

October $$50$

November $$75$

December $$100$

January $$50$

Prepare a cash budget for Activision for November and December using the table below and then answer the questions that follow.

Sept Oct Nov Dec Jan

Sales Forecast $40\mathrm{.}050\mathrm{.}075\mathrm{.}0100\mathrm{.}050\mathrm{.}0$

Cash Sales

Collections from last month $-$

Total Cash Inflows $-$

Purchases $($COGS$)$

Payments

Wages $20\mathrm{.}020\mathrm{.}020\mathrm{.}020\mathrm{.}020\mathrm{.}0$

Total Disbursements $-$

Net Cash Flow $-$

Beginning Cash Balance $10\mathrm{.}0$

Plus: Net Cash Flows

Ending Cash Balance

PART $1$

What are Activision$$s forecasted cash inflows in December?

Responses

$$75\mathrm{.}00$

$$75\mathrm{.}00$

$$52\mathrm{.}50$

$$52\mathrm{.}50$

$$67\mathrm{.}50$

$$67\mathrm{.}50$

$$77\mathrm{.}50$

$$77\mathrm{.}50$

Question $2$

PART $2$

What are Activision$$s total cash outflows in November?

Responses

$$27\mathrm{.}50$

$$27\mathrm{.}50$

$$20\mathrm{.}00$

$$20\mathrm{.}00$

$$30\mathrm{.}00$

$$30\mathrm{.}00$

$$25\mathrm{.}00$

$$25\mathrm{.}00$

Question $3$

PART $3$

What are Activision$$s net cash flows in December?

Responses

$$37\mathrm{.}50$

$$37\mathrm{.}50$

$$25\mathrm{.}00$

$$25\mathrm{.}00$

$$52\mathrm{.}50$

$$52\mathrm{.}50$

$$47\mathrm{.}50$

$$47\mathrm{.}50$

Question $4$

PART $4$

What is Activision$$s cash balance at the end of December?

Responses

$$72\mathrm{.}50$

$$72\mathrm{.}50$

$$75\mathrm{.}50$

$$75\mathrm{.}50$

$$82\mathrm{.}50$

$$82\mathrm{.}50$

$$25\mathrm{.}00$