Romona company expects its november sales to be 20% higher than its october sales of $ 240 comma 000. all sales are on credit and are collected as follows: 25% in the month of the sale and 70% in the following month. purchases were $ 70 comma 000 in october and are expected to be $ 150 comma 000 in november. purchases are paid 35% in the month of purchase and 65% in the following month. the cash balance on november 1 is $ 13 comma 700. the cash balance on november 30 will be

The cash balance on November 30 amounts to $155,700

Explanation:

Cash balance on November 30 = Beginning balance + Collection of cash from October sales + Collection of cash from November sales - Payments for October Purchases - Payments for November Purchases

where

Beginning balance is $13,700

Collection of cash from October sales =  October Sales × % amount collected

                                                                = $240,000 × 70%

                                                                = $168,000

Collection of cash from November sales =  November Sales × % amount collected

                                                                = $240,000 × 1.20 × 25%

                                                                = $72,000

Payments for October Purchases = October Purchases × % amount paid

                                                        = $70,000 × 65%

                                                        = $45,500

Payments for November Purchases = November Purchases × % amount paid

                                                        = $150,000 × 35%

                                                        = $52,500

Putting the values in the above formula

Cash balance on November 30 = $13,700 + $168,000 + $72,000 - $45,500 - $52,500

= $155,700

answerchemical property;