The Following Information Is Available from the Controller's Records for Penelope

question 34

Essay

The following information is available from the controller's records for Penelope, Ltd.:
$\begin{array}{lcc} & \text { Sales } & \text { Purchases } \\\text { May } & \$ 60,000 & \$ 20,000 \\\text { June } & 70,000 & 30,000 \\\text { July } & 80,000 & 25,000 \\\hline\end{array}$ All sales are on credit. Records show that 80 percent of the customers pay during the month of the sale, 15 percent pay the month after the sale, and the remaining 5 percent pay the second month after the sale. Purchases are all paid the following month at a 1 percent discount. Cash disbursements for operating expenses in July were $8,000.
Prepare a cash budget for July.

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Definitions:

Bronchitis

Inflammation of the bronchial tubes in the lungs, characterized by coughing and breathing difficulties, often due to infection.

Peak Expiratory Flow Meter

A portable device used to measure the speed of air expelled from the lungs, helping in the monitoring of respiratory conditions like asthma.

Asthma

A chronic respiratory condition marked by episodes of airway obstruction, causing wheezing, shortness of breath, chest tightness, and coughing.

Petroleum Gauze

A type of wound dressing coated with a petroleum-based substance to prevent the gauze from sticking to the wound.