Quill in Company had the following budgeted information for October:
October 1 cash balance $3,500
Expected sales 2,500 units at $25 each (half in cash, remainder on credit due in November)
Inventory purchases 3,000 units at $14 each (all in cash)
Rent $1,450
Payroll $1,000
Utilities and other costs $4,500
Accounts receivable balance Oct. 1, $35,000 (includes $700 bad debts allowance)
A. What is the budgeted collection on accounts receivable for October?
$
B. What are the total cash disbursements for October?
$
C. What is the ending cash balance for October?
$
D. Assuming sales are collected 75 percent in the month of sale and 25% the following month, what is the ending cash balance for October?
$