BUSI 561 – Assume the following information for the month of August.
1. Assume the following information for the month of August.JUNE SALES = $40,000JULY SALES = $65,000AUGUST SALES = $52,850.All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectible. The beginning cash balance is $14,670, with cash payments of $24,653. If the minimum cash balance is $50,000, what is the amount needed by the bank, or how much is available to pay towards the bank loan? Show the amount needed as a positive number, and the amount to repay a loan as a negative number.2. Assume the following information for the month of August.JUNE SALES = $40,000JULY SALES = $65,000AUGUST SALES = $52,850.All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the second month following, and 5% uncollectible. The beginning cash balance is $14,670, with cash payments of $24,653. If the minimum cash balance is $40,000, what is the amount needed by the bank, or how much is available to paw towards the bank loan? Show the amount needed as a positive number and the amount to repay a loan as a negative number.3. ABC Company pays for merchandise by paying cash and using credit. Credit purchases equal 80% of the purchases. Of those purchased on credit the purchases are paid as follows: 60% the current month, 35% in the month following, and 5% in the second month following. Assume January purchases are $65,000. How much of the January purchases are paid in January?Do not have to show work. Answers will be sufficient
