The following forecast information pertains to Plate Corporation:

Month Sales Purchases

July $15,000 $5,000

August 17,000 6,000

September 19,000 7,000

October 21,000 8,000

November 24,000 9,000

December 30,000 10,000

Cash is collected from customers in the following manner:

Month of sale (receive 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.

a. Prepare a month-by-month summary of cash collections for the 4th quarter (October, November December).

October November December Total

b. Prepare a month-by-month summary of cash disbursements for the 4th quarter (October, November December).

October November December Total