PROBLEM A

The following information related to Stormach Inc. sales and purchases:

Forty percent of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.

Cash is collected from customers in the following manner:

Month of sales 20%

Month following the sales 50%

Two months following sales 25%

Amount uncollectible 5%

The following budgeted sales and purchases for the next six months are given below:

Month Sales Purchases

July 25,000 10,000

August 10,000 2,500

September 15,000 5,000

October 12,500 4,000

November 15,000 5,000

December 17,500 5,000

a. The amount of cash collected from customers in September is

b. The amount disbursed to suppliers in October is

c. The amount disbursed to suppliers in November is