The Following Information Is from Barkley's Auto Alarm Company Financial

question 1

Essay

The following information is from Barkley's Auto Alarm Company 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 December are budgeted at $60,000, and sales for December are forecasted at $66,000. Cash disbursements for expenses are expected to be $14,400 for the month of December. The company's cash balance on December 1 was $22,000.

Required:
A. Expected cash collections during December.
B. Expected cash disbursements during December.
C. Expected cash balance on December 31.

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Definitions:

Sales Pitch

A persuasive speech that aims to convince the audience to buy a product or service by highlighting its benefits.

Revenue Management Tactics

Strategies used to sell the right product to the right customer at the right time for the right price, maximizing revenue.

Negative Perception

An unfavorable or adverse view that individuals or groups hold, often based on experiences or assumptions.

Maximum Revenue

The highest amount of money that can be generated from sales of goods or services, often achieved by optimizing prices and sales volumes.