Reference no: EM132531831

Required:

Question A) schedule of cash receipts for October, November, and December.

Question B) cash budget for the same period.

Top Shoppe has forecast its sales revenues and purchases for the last 5 months of 20X5 to be as follows:

                           Sales              Purchases
August            $22,000           $17,000
September         15,000            19,500
October             25,000            29,000
November          30,000            20,000
December           26,000              24,000

• Sixty percent of sales are on credit. On the basis of past experience, 50% of the accounts receivable are collected the month after the sale and the remainder are collected 2 months after the sale. Purchases are paid 30 days after they are incurred. The firm has a cash balance of $5,000 on hand as of October 31, but its minimum required cash balance is $4,000