Question
Worton Distributing expects its September sales to be 20% higher than its August sales of $164,000. Purchases were $114,000 in August and are expected to
Worton Distributing expects its September sales to be 20% higher than its August sales of $164,000. Purchases were $114,000 in August and are expected to be $134,000 in September. All sales are on credit and are expected to be collected as follows: 30% in the month of the sale and 70% in the following month. Purchases are paid 25% in the month of purchase and 75% in the following month. The cash balance on September 1 is $24,000. The ending cash balance on September 30 is estimated to be:
Multiple Choice
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$59,040.
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$59,285.
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$73,787.
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$78,840.
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$102,840.
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