Question

JUNE SALES = $40,000
JULY SALES = $65,000AUGUST SALES = $52,850.All sales are on account and

are collected as follows:  20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectible.  The beginning cash balance is $14,670, with cash payments of $24,653.  If the minimum cash balance is $50,000, what is the amount needed by the bank, or how much is available to pay towards the bank loan?  Show the amount needed as a positive number, and the amount to repay a loan as a negative number.

2. Assume the following information for the month of August.

JUNE SALES = $40,000
JULY SALES = $65,000

AUGUST SALES = $52,850.

All sales are on account and are collected as follows:  20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectible.  The beginning cash balance is $14,670, with cash payments of $24,653.  If the minimum cash balance is $40,000, what is the amount needed by the bank, or how much is available to paw towards the bank loan?  Show the amount needed as a positive number and the amount to repay a loan as a negative number.

• 3. ABC Company pays for merchandise by paying  cash and using credit.  Credit purchases  equal 80% of the purchases.  Of those  purchased on credit the purchases are paid as follows:  60% the current month, 35% in the month  following, and 5% in the second month following.  Assume January purchases are $65,000.  How much of the January purchases are paid in  January?

Do not have to show work. Answers will be sufficient 

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