Customers pay 60 of their balances in the month of sale 30

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Bentson Corporation, a wholesaler, provided the following information:

Month             Purchases               Sales

Jan:               $142,000                   $172,000

Feb:                148,000                    166,000

March:            136,000                     165,000

April:               154,000                     178,000

May:                160,000                    166,000

Customers pay 60% of their balances in the month of sale, 30% in the month following sale, and 10% in the second month following sale. The company pays all invoices in the month following purchase and takes advantage of a 3% discount on all amounts due. Cash payments for operating expenses in May will be $119,500; Bentson's cash balance on May 1 was $127,800.
Required:
Determine the following:
A. Expected cash collections during May.
B. Expected cash disbursements during May.
C. Expected cash balance on May 31.

Reference no: EM13590308

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