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  3. the graham potato company has projected sales of $

The Graham Potato Company has projected sales of $6,000 in September, $10,000 in October, $16,000...

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Accounting

The Graham Potato Company has projected sales of $6,000 in September, $10,000 in October, $16,000 in November, and $12,000 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 $13,000 and $6,000, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance. Prepare a Cash Budget with borrowing needed or repayments for November and December. (You will need to prepare the Cash Receipts Schedule first.)
Graham Potato Company Cash Receipts Schedule
\table[[,September,October,November,December],[Sales,$6,000,$10,000,$16,000,$12,000
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