Question
Purchases Sales Month $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
Purchases | Sales | Month |
$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. Compute the expected cash balance on May 31.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started