The following information is from White Mountain Furniture Company's financial records:
Month Sales Purchases
July $180,000 $105,000
August $165,000 $120,000
September $150,000 $90,000
October $195,000 $135,000
All sales are made on account. Collections from customers are normally 70 percent in the month of sale, 20 percent in the month following the sale, and 9 percent in the second month following the sale. The balance is expected to be uncollectible.
All purchases are on account. Management takes full advantage of the 2 percent discount allowed on purchases paid by the tenth of the following month.
Purchases for November are budgeted at $150,000, and sales for November are budgeted at $165,000.
Cash disbursements for expenses are expected to be $36,000 for the month of November. The company's cash balance on November 1 was $55,000.
Calculate the excepted cash balance on November 30
A) $34,000
B) $79,000
C) $37,000
D) $15,000
E) $54,700
