XYZ Company had the following budgeted information for October:

1. October 1 cash balance $3,500

2. Expected sales 2,500 units at $25 each (half in cash, remainder on credit due in November)

3. Inventory purchases 3,000 units at $14 each (all in cash)

4. Rent $1,450

5. Payroll $1,000

6. Utilities and other costs $4,500

7. Accounts receivable balance Oct. 1, $35,000 (includes $700 bad debts allowance; use this amount for both parts A and D).

Required

A. What is the budgeted collection on accounts receivable for October?

B. What are the total cash disbursements for October? C. What is the ending cash balance for October? D. Assuming sales are collected 75% in the month of sale and 25% the following month, what is the ending cash balance for October?