Determine the expected cash disbursements during May

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Problem - Novimex Corporation, a merchandiser, provided the following information:

Month

Purchases

Sales

January

$142,000

$172,000

February

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; Parson's cash balance on May 1 was $127,800.

Required - Determine the expected cash disbursements during May.

Reference no: EM132760088

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