ABC Corporation, a wholesaler, provided the following information:

Month Merchandise Purchases Sales

January $142,000 $172,000

February $148,000 $166,000

March $136,000 $165,000

April $154,000 $178,000

May $160,000 $166,000

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 and takes advantage of a 3% discount on all amounts due. Cash payments for operating expenses in May will be $119,500; Parson's cash balance on May 1 was $127,800.

Required:

Determine the following:

A. Expected cash collections during May.

B. Expected cash disbursements during May.

C. Expected cash balance on May 31.