The following information was available from ABC Company's financial records. Sales Purchases

April $90,000 $52,500

May $82,500 $60,000

June $75,000 $45,000

July $97,500 $67,500

August $82,500 $75,000

Collections from customers are as follows:

Month of sale 75%

One month following sale 20%

Second month following sale 5%

On the purchase side, the Company takes full advantage of the 3 percentdiscount allowed on purchases paid for by the tenth of the following month. (Hint: April purchases are paid in full in May by taking advantage of the discount.)

Additional information for the month of August is as follows:

Cash disbursements for administrative expenses $18,000

Amortization expenses $6,250

Cash balance on August 1 $27,500

Required:

a) Compute the cash collections for the month ofAugust. b) Compute the cash disbursements for the month ofAugust. c) Compute the cash balance on August 31.

d) Compute accounts receivable at August 31.

e) Compute accounts payable at August 31.