Answer:
Cash balance on November 30 = $77,400
Explanation:
October sales $160,000
November sales $192,000
Calculation: November sales = $160,000 + (160,000 × 20%) = $160,000 + 32,000 = $192,000.
Collection from November $48,000
As 70% will be collected from the next month, therefore we can collect 70% from the month of October = $112,000
Total cash collection in November = $48,000 + $112,000 = $160,000
Cash disbursement for the month of November $110,000 × 30% = $33,000
70% from the month of October $90,000 × 70% = $63,000
Total cash disbursement = $96,000
The cash balance on November 1 = $13,400
Add: cash collection = $160,000
Less: cash disbursement = ($96,000)
Cash balance on November 30 = $77,400
