January February March April May $ 300,000 (actual) 400,000 (actual) 445,000 (estimated) 589,000 (estimated) 800,000 (estimated) The company's collection activity on credit sales historically has been as follows: Collections in the month of the sale Collections one month after the sale Collections two months after the sale Uncollectible accounts 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. 50% 30 15 Required: Compute Spicer's budgeted cash balance at the ends of March, April, and May Beginning Cash Collections on January Sales Collections on February Sales March April May
January February March April May $ 300,000 (actual) 400,000 (actual) 445,000 (estimated) 589,000 (estimated) 800,000 (estimated) The company's collection activity on credit sales historically has been as follows: Collections in the month of the sale Collections one month after the sale Collections two months after the sale Uncollectible accounts 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. 50% 30 15 Required: Compute Spicer's budgeted cash balance at the ends of March, April, and May Beginning Cash Collections on January Sales Collections on February Sales March April May
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 18E
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