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:

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Disabilities that affect the senses, such as vision, hearing, taste, touch, or smell, impacting a person’s ability to receive and interpret sensory information.