Dorette Corporation management makes the following data available:

The company takes full advantage of the 3 percent discount allowed on purchases paid for by the 10th of the following month. Dorette expects $13,560 June operating expenses, including $3,000 depreciation. The company’s cash balance at June 1 is $8,500.
Collections from charge customers are normally 50 percent in the month of sale, 30 percent in the month following the sale, and 12 percent in the second month following the sale. The balance is expected to be uncollectible. June cash sales are expected to be $20,000.
Required:

a. Calculate the cash disbursement expected during June.

b. Compute the cash collections expected from charge customers during June.

c. Give the cash balance at June 30 which is forecasted.

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Charge Sales Purchases February $75,000 $50,000 March 85,000 58,000 April 50,000 31,000 May 60,000 45,000 June (budgeted) 80,000 62,000