Reference no: EM132567935

1st quarter: net sales: 646,300... Purchases: 558,300...

2nd quarter: net sales: 674,900... Purchases: 571,600

3rd quarter: net sales: 664,800... Purchases: 561,200

4th quarter: net sales: 681,600... Purchases: 582,300

a. Actual amounts for the fourth quarter of 20-2: sales, $639,200 purchases, $548,240

b. The balance of cash on hand on January 1, 20-3, is $35,720.

c. In each quarter, cash sales are 10.0% and collections of accounts receivable are 50.0% of the projected net sales for the current quarter. Collections from the preceding quarter's net sales are 39.5% of that quarter. Uncollectible accounts expense is 0.5% of net sales.

d. In each quarter, cash payments for cash purchases are 10.0% and for accounts payable 30.0% of the purchases for the current quarter. Cash payments for purchases of the preceding quarter are 60.0% of that quarter.

e. Record only total projected cash payments for expenses as shown in the table above.

f. In the second quarter, SeaWest will borrow $35,000 on a promissory note and will purchase equipment costing $31,600 for cash. In the third quarter dividends of $30,000 will be paid in cash. In the fourth quarter, the promissory note plus interest will be paid in cash, $37,500.

g. Equal quarterly income tax payments are based on projected annual federal income tax expense of $7,720.

Question 1: what is the cash balance - beginning of 1st, 2nd, 3rd and 4th quarter of a cash budget?