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Assignment 2: Problems Part 1 The following information pertains to ABC Corporation: Month July August September October November December Sales...

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Assignment 2: Problems Part 1 The following information pertains to ABC Corporation: Month Sales Purchases July $40,000 $20,000 August $30,000 $15,000 September $20,000 $10,000 October $50,000 $25,000 November $60,000 $30,000 December $70,000 $35,000 Cash is collected from customers in the following manner: Month of sale 20% Month following the sale 45% Two months following sale 33% Amount uncollectible 2% Thirty percent of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. A 2% discount is allowed on purchases paid for in the month of purchase. Labor costs equal 20% of sales; other operating costs of $5,000 per month, including $2,000 of depreciation. Both are paid  in the month incurred. The cash balance on October 1 is $4,300. A minimum cash balance of $5,000 is required at the end of the month. Money is  borrowed in multiples of $1,000. The company will issue $5,000 of common stock and pay $8,000 in dividends in October. There is no debt outstanding at October 1. Prepare a projected cash flow statement in good form for the month ended  October 31. Here is the format to use: Cash Inflows: Cash collections from customers: August September October Total Cash Outflows: Cash outflows for operating: Suppliers Labor Operating costs Total Net cash flows this month Opening cash Cash dividends paid Cash from stock issue Cash Available Opening Loan Borrowing Made
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Borrowing Repaid Ending Loan Ending cash
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