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Budget, Disbursements and Form

Budget, Disbursements and Form

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let's take a look at this problem where we'll deal with schedules of expected cash Collections and dispersements you've been asked to prepare a December cash balance for Ashton company a distributor of exercise equipment and the following information is available about the company's operations okay I'm reading notes a through F that you see on the screen there the cash balance on December 1st is $40,000 actual sales for October and November and expected sales for December are shown in this table right in here sales on account are collected over a 3-month period as follows 20% is collected in the month of sale 60% collected in the month following sale and 18% collected in the second month following sale the remaining 2% is uncollectable note C says purchases of inventory will be 280,000 for December 30% of a month's inventory purch purchases are paid during the month of purchase the accounts payable remaining from November's invent

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