Long & Short Company Developed the Following Data for the Month

Question 142
Essay

Long & Short Company developed the following data for the month of June. 1 June 1 cash balance $2,300. 2 Cash sales in June $67,000. 3 Credit sales for June are $20,000; for May $10,000; and for April $16,000. Credit sales are collected as follows: 60% in the month of sale, 20% in the following month, and 10% in the second month following the sale. 4 Purchases for May were $34,000 and for June are $40,000. Half of purchases are paid in the month of purchase and the remainder in the following month. 5 June salaries are $28,400, utilities are $1,090, and depreciation on the building is $1,000. Required: A. Calculate the anticipated cash receipts from accounts receivable in June. B. Calculate the anticipated total cash available in June. C. Calculate the June cash payments for purchases. D. Calculate the anticipated cash balance on June 30.