Juliet needs to determine if her business will generate enough cash to get through the end of the year. She expects credit sales to be $30,000 in October, $32,000 in November and $40,000 in December. Credit sales in August were $26,000 and $34,000 in September. Her cash sales have been $10,000 in August, $15,000 in September, and are projected to be $ 16,000 in October, $12,000 in November and $18,000 in December. History has shown that by offering a 2% discount for all credit sales paid in ten days, Juliet can expect 70% of his credit sales customers to take advantage of the discount and pay in the same month. 20% of the customers will pay one month following the sale and 6% will pay two months following the sale. Determine the amount of cash receipts that Juliet can expect in October, November and December.
On October 1st, Juliet had a cash balance of $8,000 which is his minimum cash balance? She expects cash disbursements of $50,000 in October, $55,000 in November and $40,000 in December. Will she have enough cash to get through the end of the year?