Question: Problem 2 The Amber Magic Shoppe has forecast its sales revenues and purchases for the last 5 months of 200x to be as follows: Sales

Problem 2 The Amber Magic Shoppe has forecast its sales revenues and purchases for the last 5 months of 200x to be as follows: Sales Purchases $25.000 $17.000 September 15.000 19,500 25.000 29.000 30.000 20,000 26.000 24,000 August October November December 65% of sales are on credit. On the basis of past experience, 50% of the accounts receivable are collected th month after the sale and the remainder are collected 2 months after the sale. Purchases are paid 30 days aft they are incurred. The firm had a cash balance of $5,000 as of September 30th, and its minimum required balance is $4,000. It had no beginning loan balance. Prepare a cash budget for October, November and December. 375 2by 4375 125u, 8000 146

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