The following information is from White Mountain Furniture Showroom’s financial records.

Collections from customers are normally 70 percent in the month of sale, 20 percent in the month following the sale, and 9 percent in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 2 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for November are budgeted at $ 150,000, and sales for November are forecasted at $ 165,000. Cash disbursements for expenses are expected to be $ 36,000 for the month of November. The company’s cash balance on November 1 was $ 55,000.

Prepare the following schedules.
1. Expected cash collections during November.
2. Expected cash disbursements during November.
3. Expected cash balance on November 30.

  • CreatedApril 22, 2014
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