On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and M
Posted: Sun Jul 03, 2022 3:52 pm
On March 1 of the current year, Spicer Corporation compiledinformation to prepare a cash budget for March, April, and May. Allof the company’s sales are made on account. The followinginformation has been provided by Spicer’s management.
The company’s collection activity on credit sales historicallyhas been as follows.
Spicer’s total cash expenditures for March, April, and May havebeen 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. Nofinancing or investing activities are anticipated during the secondquarter.
Compute Spicer’s budgeted cash balance at the ends of March,April, and May.
The company’s collection activity on credit sales historicallyhas been as follows.
Spicer’s total cash expenditures for March, April, and May havebeen 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. Nofinancing or investing activities are anticipated during the secondquarter.
Compute Spicer’s budgeted cash balance at the ends of March,April, and May.