Answer:
Worton Distributing
he ending cash balance on September 30 is estimated to be:
= $87,440
Explanation:
a) Data and Calculations;
                                 August        September
Sales                    $168,000       $201,600 ($168,000 * 1.2)
Purchases            $118,000         $138,000
Cash balance September 1         $28,000
Collection of sales on credit:  August     September
Sales                                     $168,000      $201,600
40% month of sale                  67,200          80,640
60% month following                                  100,800
Total cash collections                                $181,440
Payment for purchases:      August        September
Purchases                          $118,000         $138,000
Payment:
20% month of purchase     23,600             27,600
80% month following                                   94,400
Total payment for purchases                  $122,000
Cash budget for September
Beginning balance $28,000
Cash collections       181,440
Available cash      $209,440
Cash payments      122,000
Ending balance      $87,440