What is? craftco, inc. projected cash balance

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CraftCo, Inc.'s projected sales for the first six months of 2012 are given? below:

Jan. ?$500,000

Feb. $740,000

Mar. $380,000

April  ?$490,000

May  ?$740,000

June ?$610,000

?40% of sales are collected in cash at time of? sale, 50% are collected in the month following the? sale, and the remaining? 10% are collected in the second month following the sale. Cost of goods sold is? 60% of sales. Purchases are made in the month prior to the? sales, and payments for purchases are made in the month of the sale. Total other cash expenses are? $40,000/month. The? company's cash balance as of February? 28, 2012 will be? $25,000. Excess cash will be used to retire short-term borrowing? (if any).? CraftCo, Inc. has no short term borrowing as of February? 28, 2012. Assume that the interest rate on short-term borrowing is? 1% per month. The company must have a minimum cash balance of? $15,000 at the beginning of each month. What is? CraftCo, Inc.'s projected cash balance at the end of March? 2012?

Reference no: EM132355614

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