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Prince Charles Island Company has expected sales of $6,000 in September, $10,000 in October, S16,000 in November, and $12,000 in December. Cash sales are 20 percent and credit sales are 80 percent of total sales. Historically, 40 percent of receivables are collected in the month after the sale, and the remaining 60 percent collected two months after Assume that the company's cash payments for November are $13,000, and December $6,000. 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 Prince Charles Island Company Cash Receipts Schedule September October $ 6000 $ 10.000 4800 8000 2000 November $ 16.000 12800 3200 December $ 12.000 9600 2400 1200 Sales Credit sales Cash sales Collections in the month after credit sales Collections two months after credit sales Total cash receipts 3200 5120 4800 2880 9280 $ $ 12320 b. Prepare a cash budget with borrowing needed or repayments for November and December (Do not leave any empty spaces; input O wherever it is required. Amount to be deducted should be indicated with minus sign.) Prince Charles Island Company Cash Budget b. Prepare a cash budget with borrowing needed or repayments for November and December. (Do not leave any empty spaces; input O wherever it is required. Amount to be deducted should be indicated with minus sign.) Prince Charles Island Company 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

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