Timpco, a retailer, makes both cash and credit sales (i.e.,sales on open account). Information regarding budgeted sales forthe last quarter of the year is as follows: October NovemberDecember Cash sales $ 105,000 $ 87,000 $ 91,000 Credit sales105,000 104,400 100,100 Total $ 210,000 $ 191,400 $ 191,100 Pastexperience shows that 5% of credit sales are uncollectible. Of thecredit sales that are collectible, 60% are collected in the monthof sale; the remaining 40% are collected in the month following themonth of sale. Customers are granted a 1.5% discount for paymentwithin 10 days of billing. Approximately 75% of collectible creditsales take advantage of the cash discount. Inventory purchases eachmonth are 100% of the cost of the following month’s projectedsales. (The gross profit rate for Timpco is approximately 30%.) Allmerchandise purchases are made on credit, with 20% paid in themonth of purchase and the remainder paid in the following month. Nocash discounts for early payment are in effect. Required: 1.Calculate the budgeted total cash receipts for November andDecember. (Round your intermediate calculations and final answersto the nearest whole dollar amount.) 2. Calculate budgeted cashdisbursements for November and December (budgeted total sales forJanuary of the coming year equals $184,000).