Reference no: EM132447188

Question - On January 1, West Company had cash on hand of $100,000. All of January's $224,000 sales were on account. December sales of $250,000 were also all on account. Experience has shown that West typically collects 30% of receivables in the month of the sale and the balance the following month. All materials and supplies are purchased on account and West has a history of paying for half of these purchases in the month of purchase and half the following month. Such purchases were $174,000 for December and $178,000 for January. All other expenses including wages are paid in the month incurred. These amounted to $42,000 in December and $40,000 in January. Compute the projected ending balance of cash on hand for January.