The following information is from Binghamton Film Corporation's financial records. Collections from customers are normally 70 percent

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The following information is from Binghamton Film Corporation's financial records.
The following information is from Binghamton Film Corporation's financial records.
Collections

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 August are budgeted at $60,000, and sales for August are forecasted at $66,000. Cash disbursements for expenses are expected to be $14,400 for the month of August. The company's cash balance on August 1 was $22,000.
Required:
Prepare the following schedules.
1. Expected cash collections during August.
2. Expected cash disbursements during August.
3. Expected cash balance on August 31.

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