The following information is from Barkleys Auto Alarm Company financial records. Collections from customers are normally 65 percent in the month of sale, 25 percent in the month following the sale, and 9 percent in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 3 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for December are budgeted at $74,000, and sales for December are forecasted at $80,000. Cash disbursements for expenses are expected to be $17,200 for the month of December. The companys cash balance on December 1 was $29,000.

Required:

1. Prepare the expected cash collections during December.
2. Prepare the expected cash disbursements during December.
3. Prepare the expected cash balance on December 31.

The following information is from Barkley's Auto Alarm Company financial records. Collections from customers are normally 65 percent in the month of sale, 25 percent in the month following the sale, and 9 percent in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 3 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for December are budgeted at $74,000, and sales for December are forecasted at $80,000. Cash disbursements for expenses are expected to be $17,200 for the month of December. The company's cash balance on December 1 was $29,000. Month August September October November Sales $86,000 80,000 74,000 92,000 Purchases $56,000 62,000 50,000 68,000 Required: A. Prepare the expected cash collections during December. B. Prepare the expected cash disbursements during December. C. Prepare the expected cash balance on December 31