Balance sheet info. as of Sep 30,2014:
Recent and anticipated sales:
(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.)
1)how to calculcate the collections on AR.
2)Disbursement for purchase.