Reference no: EM133163054

Question - Josey manufactures dolls and estimates sales of $120,000 for November, $100,000 for December and $150,000 for January. She sells each doll for $20 and the cost to make each one is $10. She expects 50% of the sales will be collected in the month of sale and the remaining 50% the following month. The beginning cash balance for November is $20,000. Beginning inventory in November is 2,000 dolls and Josey estimates to maintain at least 20% of next month's sales for ending inventory. Fixed costs each month are $10,000. Production and fixed costs are all paid in cash. Ignoring October's sales, what is Josey's estimated cash balance at the end of November?