Exercise 9-25

1. WHITE MOUNTAIN FURNITURE SHOWROOM

EXPECTED CASH COLLECTIONS
NOVEMBER
Expected
Month Sales Percent Collections
September $150,000 9% $ 13,500
October 195,000 20% 39,000
November 165,000 70% 115,500
Total $168,000
2. WHITE MOUNTAIN FURNITURE SHOWROOM
EXPECTED CASH DISBURSEMENTS
NOVEMBER
October purchases to be paid in November $135,000
Less: 2% cash discount 2,700
Net $132,300
Cash disbursements for expenses 36,000
Total $168,300
3. WHITE MOUNTAIN FURNITURE SHOWROOM
EXPECTED CASH BALANCE
NOVEMBER 30
Balance, November 1 $ 55,000
Add: Expected collections 168,000
Less: Expected disbursements 168,300
Expected balance $ 54,700