Cash receipt

Quiz #2 - Ch 4 & 5 Question 1 (48 marks) Enterprise Lid has forecast its sales revenues and inventory purchases for the last five months of 2020 to be as follows: Sales Purchases August 26,000 $ 19,000 September 19,000 $ 19,000 October 31,000 35,000 November 39,000 21,000 December 25,000 $ 22,000 More information is below. In addition, its minimum required cash balance is $5,000. If there is a cash balance in excess of $5,000, Enterprise Ltd will pay down any outstanding debt (if applicable). Proportion of sales on credit 75% Accounts receivable collected month after sale 75% Accounts receivable collected two months after sale 20% Accounts receivable nerer collected (bad debts) 5% Purchases are paid for 1 month after they occur Cash on hand at September 30 Outstanding debt at September 30 7,000 2,000 a) Prepare a schedule of cash receipts for October, November, and December. b) Prepare a cash budget for the same period