Armidale Corporation has provided the following cash budget forecasts:

Month Sales Purchases

July $30,000 $10,000

August 34,000 $12,000

September 38,000 $14,000

October 42,000 $16,000

November 48,000 $18,000

December 60,000 $20,000

• Cash is collected from customers in the following manner: Month of sale (2% cash discount)30% , Month following sale 50% ,Two months following sale 15% ,Amount uncollectible 5%. 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.

• Required:

  1. Prepare a summary of cash collections for the 4th quarter. (Marks 3)

  2. Prepare a summary of cash disbursements for the 4th quarter. (Marks 3)