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ALL PARTS Tytler Inc. needs your help preparing the cash budget. Sales are listed below as well! as the collections Tytler Inc. is expecting for
ALL PARTS Tytler Inc. needs your help preparing the cash budget. Sales are listed below as well! as the collections Tytler Inc. is expecting for the first few months of 2021. Assume that all sales are on credit and there will be no allowance of uncollectible receivables. (Please show as much work as you can) 70% of sales are collected in the month of sale 20% of sales are collected in the first month after sale 10% of sales are collected in the second month after sale . Month Total Sales January $195,000 February $180,000 March $165,000 April $190,000 a. Compute cash collections from customers for the month of March b. What is the AR balance at the end of March? c. Tytler Inc. wants to maintain a minimum monthly cash balance of $12,000. On January 1st the cash balance was $20,000. Cash receipts for January are expected to be $192,000 while cash disbursements are expected to be $250,000. How much cash will Tytler Inc. need to borrow to maintain the desired cash balance of $12,000? RSSE
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