Its cash balance on march 1 of the current year is 500000

Reference no: EM13483678

On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company's sales are made on account. The following information has been provided by Spicer's management:

Month	Credit Sales
Jan.	$	300,000	(actual)
Feb.		400,000	(actual)
Mar.		570,000	(estimated)
Apr.		660,000	(estimated)
May		800,000	(estimated)

The company's collection activity on credit sales historically has been as follows:


Collections in the month of the sale	50	%
Collections one month after the sale	30
Collections two months after the sale	15
Uncollectible accounts	5

Spicer's total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400,000 per month). Its cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarter.

Compute Spicer's budgeted cash balance at the ends of March, April, and May. (Omit the "$" sign in your response.)


Cash balance on March 31	$
Cash balance on April 30	$
Cash balance on May 31	$

Reference no: EM13483678

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