Budgeted sales are: Month Sales revenue August $15,000 September $15,000 October $14,000 November $13,000 December $20,000 You collect 50% of sales revenue as cash in the month of the sale, 40% in the following month, and 10% two months after the sale. a) Compute budgeted cash inflows for October and November: October = $ November = $ Remember to go backwards in time: e.g., 40% of September revenue is collected in the following month (October). This implies that cash inflows for October include 40% of sales from the previous month (September).

 To compute the budgeted cash inflows for October and November, we need to consider the collections from sales revenue made in the current month, the previous month, and two months prior, based on the given percentages (50%, 40%, and 10% respectively).

For October:- 50% of October sales collected in October: $14,000 * 50% = $7,000 - 40% of September sales collected in October: $15,000 * 40% = $6,000 - 10% of August sales collected in October: $15,000 * 10% = $1,500 - Total cash inflows for October = $7,000 (from October) + $6,000 (from September) + $1,500 (from August) = $14,500For November:** - 50% of November sales collected in November: $13,000 * 50% = $6,500 - 40% of October sales collected in November: $14,000 * 40% = $5,600 - 10% of September sales collected in November: $15,000 * 10% = $1,500 - Total cash inflows for November = $6,500 (from November) + $5,600 (from October) + $1,500 (from September) = $13,600

So the budgeted cash inflows are: - October = $14,500 - November = $13,600