Montero Corporation,a Merchandising Company,has Provided the Following Budget Data

Montero Corporation,a merchandising company,has provided the following budget data:
Collections from customers are normally 70% in the month of sale,20% in the month following the sale,and 9% in the second month following the sale.The balance is expected to be uncollectible.Montero pays for purchases in the month following the purchase.Cash disbursements for expenses other than merchandise purchases are expected to be $14,400 for May.Montero's cash balance on May 1 was $22,000.
Required:
a)Compute the expected cash collections during May.
b)Compute the expected cash balance on May 31.

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