Reference no: EM131588040

Lansing Auto Parts, Inc., has projected sales of $27,000 in October, $37,000 in November, and $32,000 in December. Of the company’s sales, 15 percent are paid for by cash and 85 percent are sold on credit. The credit sales are collected one month after sale. Determine collections for November and December. Also assume that the company’s cash payments for November and December are $32,400 and $30,000, respectively. The beginning cash balance in November is $6,200, which is the desired minimum balance. (a) Prepare a cash receipts schedule for November and December. (Omit the "$" sign in your response.) LANSING AUTO PARTS, INC. Cash Receipts Schedule October November December Sales $ $ $ Cash sales Collections Total cash receipts $ $ (b) Prepare a cash budget with borrowing needed or repayments for November and December. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.) LANSING AUTO PARTS, INC. Cash Budget November December Cash receipts $ $ Cash payments Net cash flow Beginning cash balance Cumulative cash balance Monthly loan or (repayment) Cumulative loan balance Ending cash balance $ $