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Balance sheet info. as of Sep 30,2014:
Cash $12000
AR $10000
Inventory $63600
Equipment-net $100000
Recent and anticipated sales:
Sept $40000
Oct $48000
Nov $60000
Dec $80000
Jan $36000
(credit sales:75%cash and 25% on credit.Assume that credit accounts are all collected within 30days from sale.The AR on Sept 30 are the result of the credit sales for Sept[25% of $40000]) (gross margin averages 30% of revenues.) (purchases:company keeps a minimum inventory of $30000.The policy is to purchase each month additional inventory in the amount necessary to provide for the following month's sales.Terms on purchases are 2/10[payments on purchases are to be made in 30days,2% discount is availabe if the payment is made within 10days after purchase.Assume that payments are made in the month of purchase and that all discounts are taken.)

problems:

1)how to calculcate the collections on AR.
2)Disbursement for purchase.

 

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