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Fardale Corporation provided the following budgeted sales information:

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Month                                Sales

January                          $195,000

February                        $210,000

March                            $183,000

April                              $111,000

May                               $252,000


The markup on the cost of products is 50% (meaning that sales are 150% of cost). Fardale desires to have ending inventory of 40% of the following months sales each month. 


All sales are on account. Customers pay 40% of their balances in the month of sale, 50% 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 4% discount on all amounts due. Cash payments for operating expenses in May will be $70,000; Fardale's cash balance on May 1 was $215,000.


Required:

Determine the following:


Expected cash collections during May.

Expected cash disbursements during May.

Expected cash balance on May 31.

Expected accounts receivable balance on May 31.

Show computations here:

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