The following information is from Tejas Window Tint's financial records.

Month Sales Purchases April $79,000$60,000May70,00044,000June74,00032,000July80,00050,000

Collections from customers are normally 69 percent in the month of sale, 20 percent in the month following the sale, and 8 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 2 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for August are budgeted at $67,000, and sales for August are forecasted at $73,000. Cash disbursements for expenses are expected to be $14,600 for the month of August. The company's cash balance on August 1 was $34,000.

Required:

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

Complete this question by entering your answers in the tabs below.

Required 1

Prepare the expected cash collections during August.

TEJAS WINDOW TINTExpected Cash Collections August Month Sales Percent Expected Collections August%July%June% Total$

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Required 2

Prepare the expected cash disbursements during August.

TEJAS WINDOW TINTExpected Cash DisbursementsAugust July purchases to be paid in August Net Cash disbursements for expenses Total$

0

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Required 3

Calculate the expected cash balance on August 31.

TEJAS WINDOW TINTExpected Cash Balance August 31 Balance, August 1 Expected balance