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Beata Corp. has the following sales forecasts for the selected three-month period in the current year: Month Sales
Sixty percent of sales are collected in the month of the sale, and the remaining balance is collected in the following month. Accounts Receivable balance (April 1) $11,000 Cash balance (April 1) 4,000 Minimum cash balance is $2,500. Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges). Calculate the expected cash balance at the end of April, assuming that cash is received only from customers and that $15,000 is paid out during April?
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