The Following Information Pertains to Amigo Corporation - Cash Is Collected from Customers in the Following Mantner

question 16

Essay

The following information pertains to Amigo Corporation:
$\begin{array} { l r r } \text { Month } & \text { Sales } & \text { Purchases } \\ \text { July } & \$ 30,000 & \$ 10,000 \\ \text { August } & 34,000 & 12,000 \\ \text { September } & 38,000 & 14,000 \\ \text { October } & 42,000 & 16,000 \\ \text { November } & 48,000 & 18,000 \\ \text { December } & 60,000 & 20,000 \end{array}$
- Cash is collected from customers in the following mantner:
$\begin{array}{lr}\text { Month of sale ( } 2 \% \text { cash discount) } & 30 \% \\\text { Month following sale } & 50 \% \\\text { Two months following sale } & 15 \% \\\text { Amount uncollectible } & 5 \%\end{array}$
- $40 \%$ of purchases are paid for in cash in the month of purchase, and the balance is paid
the following month. Required:
a.Prepare a summary of cash collections for the 4th quarter.
b.Prepare a summary of cash disbursements for the 4th quarter.

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Definitions:

Autocratic Leader

A leadership style where decision-making is centralized in the leader, often without input or consultation from others.

Participative Leader

A leadership style characterized by involving team members in decision-making processes and valuing their input.

Consultative Leader

A leadership style where the leader seeks input from team members before making decisions, emphasizing collaboration and advice.

Group Development

A dynamic process involving stages through which groups pass as they evolve, including forming, storming, norming, performing, and adjourning.