Problem $4-24($Algo$)$ Cash budget $[$LO$4-2]$

Graham Potato Company has projected sales of $$17,400$ in September, $$19,500$ in October, $$27,400$ in

November, and $$23,400$ in December. Of the company's sales, $20$ percent are paid for by cash and $80$

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 $$23,000$ and $$15,500,$

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.

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 $0$ wherever required.