Question
4. (10 points) Parson Corporation, a wholesaler, provided the following information: Month Merchandise Purchases Sales January $ 151,000 $ 190,000 February 157,000 184,000 March 145,000
4. (10 points) Parson Corporation, a wholesaler, provided the following information:
| Month | Merchandise Purchases |
| Sales | ||||
| January | $ | 151,000 |
|
| $ | 190,000 |
|
| February |
| 157,000 |
|
|
| 184,000 |
|
| March |
| 145,000 |
|
|
| 183,000 |
|
| April |
| 163,000 |
|
|
| 196,000 |
|
| May |
| 169,000 |
|
|
| 184,000 |
|
Customers pay 65% of their balances in the month of sale, 25% in the month following sale, and 10% in the second month following sale. The company pays all invoices in the month following purchase. Cash payments for operating expenses in May will be $124,000; Parsons cash balance on May 1 was $136,800. Required: A. Determine the expected cash collections during May. B. Determine the expected cash disbursements during May. C. Determine the expected cash balance on May 31.
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CISA Certified Information Systems Auditor Study Guide Aligned With The CISA Review Manual 2019 To Help You Audit Monitor And Assess Information Systems
Authors: Hemang Doshi
1st Edition
1838989587, 978-1838989583
