The following information is from Barkleys Auto Alarm Company financial records. Collections from customers are normally 70 percent in the month of sale, 20 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 $72,000, and sales for December are forecasted at $78,000. Cash disbursements for expenses are expected to be $16,800 for the month of December. The companys cash balance on December 1 was $28,000.

Month	Sales				Purchases
August	$	84,000			$	54,000
September		78,000				60,000
October		72,000				48,000
November		90,000				66,000

Required:

Prepare the expected cash collections during December.

Prepare the expected cash disbursements during December.

Prepare the expected cash balance on December 31.

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Prepare the expected cash collections during December.

Month	Expected Collections
October
November
December
Total

Prepare the expected cash disbursements during December.

BARKLEYS AUTO ALARM COMPANY
Expected Cash Disbursements
December
November purchases to be paid in December
Net
Cash disbursements for expenses
Total

Prepare the expected cash balance on December 31.

BARKLEYS AUTO ALARM COMPANY
Expected Cash Balance
December 31
Balance, December 1
Expected balance