The following information is from Tejas WindowTint’s financial records.

Collections from customers are normally 70 percent in the month of sale, 20 percent in the month following the sale, and 9 percent in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 2 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for August are budgeted at $60,000, and sales for August are forecasted at $66,000. Cash disbursements for expenses are expected to be $14,400 for the month of August. The company’s cash balance on August 1 was $22,000.

Required: Prepare the following schedules.
1. Expected cash collections during August.
2. Expected cash disbursements during August.
3. Expected cash balance on August 31.

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Month Sales Purchases April $72,000 $42,000 May 66,000 48,000 June 60,000 36,000 July 78,000 54,000