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Renson Corporation, a wholesaler, provided you with the following information: Month Merchandise Purchases Sales January $142,000 $172,000 February 148,000 166,000 March 136,000 165,000 April 154,000
| Renson Corporation, a wholesaler, provided you with the following information: | ||||||
| Month | Merchandise Purchases | Sales | ||||
| January | $142,000 | $172,000 | ||||
| February | 148,000 | 166,000 | ||||
| March | 136,000 | 165,000 | ||||
| April | 154,000 | 178,000 | ||||
| May | 160,000 | 166,000 | ||||
| Renson's expected pattern of cash collections: | ||||||
| 60% | collected in the month of the sale | |||||
| 30% | collected in the month after the sale | |||||
| 10% | collected in the second month after the sale | |||||
| Renson pays all of its invoices in the month following the purchase and takes advantage of all available early payment discounts. | ||||||
| Available discount for early payment | 3% | |||||
| Remson's expected payments in May for operating expenses | $119,000 | |||||
| Remson's actual cash balance on May 1 | $127,000 | |||||
| Required: | ||||||
| A. | Prepare a schedule to compute expected cash collections for the month of May. | |||||
| B. | Prepare a schedule to compute expected cash payments for the month of May. | |||||
| C. | Prepare a schedule to the compute expected balance on May 31. | |||||
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