Hello,

Please may I ask for some assistance with this question for how to Compute the expected cash collections during May and Compute the expected cash balance on May 31.

Fonsey Corporation, a merchandising company, has provided the following budget data:

Purchases Sales PuMonth

$39,500 $69,000 January

47,200 65,900 February

37,500 61,200 March

55,000 79,850 April

59,500 66,100 May

Collections from customers are normally 65% in the month of sale, 22% in the month following the sale, and 11% in the second month following the sale. It is expected that the balance be uncollectible. Fonsey pays for purchases in the month following the purchase. Cash disbursements for expenses other than merchandise purchases are expected to be $13,300 for May. Fonsey's cash balance on May 1 was $21,500.