Cash collections and disbursements Consider the following information for XY Limited:

Month Sales

$

Purchases

$

July 30 000 10 000 August 34 000 12 000 September 38 000 14 000 October 42 000 16 000 November 48 000 18 000 December 60 000 20 000 Cash is collected from customers in the following manner:

Month of sale (2% cash discount) 30%

Month following sale 50%

Two months following sale 15%

Amount uncollectable 5%

In the month of purchase, 40 per cent of purchases are paid for in cash, and the balance is paid the following month.

Required:
1 What are the cash collections for October?
2 What are the cash collections for November?
3 What are the cash disbursements for October?
4 What are the cash disbursements for November?