Question
Walter Enterprises expects its September sales to be 20% higher than its August sales of $215,000. Purchases were $165,000 in August and are expected to
Walter Enterprises expects its September sales to be 20% higher than its August sales of $215,000. Purchases were $165,000 in August and are expected to be $185,000 in September. All sales are on credit and are collected as follows: 35% in the month of the sale and 65% in the following month. Merchandise purchases are paid as follows: 25% in the month of purchase and 75% in the following month. The beginning cash balance on September 1 is $8,200. The ending cash balance on September 30 would be:
a. $68,250.
b. $24,200.
c. $60,050.
d. $192,000.
e. $81,200.
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