The following information is from Binghamton Film Corporations financial records. Month Sales Purchases April $72,000 $42.00 May
Question:
The following information is from Binghamton Film Corporation’s financial records.
Month | Sales | Purchases |
April | $72,000 | $42.00 |
May | 66,000 | 48,000 |
June | 60 | 36 |
July | 78,000 | 54 |
Collections from customers are normally 68 percent in the month of sale 17 percent in the month following the sale and 13 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 60000 and sales for November are forecasted at 66000 Cash disbursements for expenses are expected to be $14,00 for the month of August. The company’s cash balance on August I was $22.000.
Required:
Prepare the following schedules.
l. Expected cash collections during August.
2. Expected cash disbursements during August.
3. Expected cash balance on August 31.
Expert Answer:
