I need the full Answers for this question (please I need it fully described not

Question

I need the full Answers for this question (please I need it fully described not on excel)

The following information is from Film Co.'s records. Month May June July Sales $66,000 60,000 78,000 Purchases $48,000 36,000 54,000 Collections from customers are 70% in the month of sales, 20% in the following month, 9% in the second following month, and remaining 1% is uncollectible. All purchases are on account. Management takes full advantage of 2% discount allowed on purchases paid for by the tenth of the following month. Purchases for August are budgeted at $60,000, and sales for August are forecasted at $66,000. Cash disbursement s for expense are expected to be $14,400 for August The company's cash balance on August 1 was $22,000 1. Compute the expected cash collections during August 2. Compute the expected cash disbursements during August. 3. Compute the expected cash balance on August 31.

Explanation / Answer

Req 1. Cash collections from August: Sales collection of Aug (66000*70%) 46200 Sales of July (78000*20%) 15600 Sales of June (60000*9%) 5400 Total cash collections 67200 Req 2: Cash disbursement from Aug: Purchase of july (54000-2%) 52920 Total cash disbursement of cash 52920 Req 3: Cash balance in Beginning 22000 Add: Cash collections 67200 Total cash available 87200 Less: Cash payment for purchases 52920 Less: Cash payment of expense 14400 Ending balance of cash 19880

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