Fast Distribution Company expects its September sales to be 25% higher than its August sales of $151,000. Purchases were $101,000 in August and are expected to be $121,000 in September. All sales are on credit and are expected to be collected as follows: 30% in the month of the sale and 70% in the following month. Purchases are paid 25% in the month of purchase and 75% in the following month. The cash balance on September 1 is $11,000. The ending cash balance on September 30 is estimated to be: _________

Question

contestada

Respuesta :

abiolataiwo2015 abiolataiwo2015 · Answer 1 · 2021-11-05T14:09:54+01:00

The ending cash balance on September 30 is estimated to be: $67,325.

Fast Distribution Company Ending cash balance

Beginning cash balance $11,000

Cash receipts from credit sales made in August $105,700

($151,000 × 0.70)

Cash receipts from credit sales made in September $56,625

[($151,000 × 1.25)× 0.30]

Less Cash disbursements from purchases made in August ($75,750)

($101,000 × 0.75)

Less Cash disbursements from purchases made in September ($30,250)

($121,000 × 0.25)

Ending balance $67,325

($11,000 + $105,700 + $56,625 - $75,750 - $30,250)

Inconclusion the ending cash balance on September 30 is estimated to be: $67,325.

Learn more here:

https://brainly.com/question/13091101