The following information was obtained from Kelly Corporation:

MonthSalesPurchases

April$32,000$12,000

May36,00014,000

June40,00016,000

July44,00018,000

August48,00020,000

September57,00022,000

Cash is collected from customers as follows:

Month of sale (3% cash discount)25%

Month following sale45%

Two months following sale25%

Amount uncollectible5%

35% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.

Required:

a.Prepare a summary of cash collections for the 3th quarter.

b.Prepare a summary of cash disbursements for the 3th quarter