Johnson Corporation has the following sales forecasts for the first threemonths of the current year:MonthSalesJanuary$39,000February26,000March45,00085% of sales are collected in the month of the sale and the remainder iscollected in the following month.Accounts receivable balance (January 1)Cash balance (January 1)Minimum cash balance needed$25.80025.00022.000What is the cash balance at the end of January, assuming that cash is receivedonly from customers and that $50,000 is paid out during January?

Computation of the cash balance at the end of January:Cash balance, January 1$25,000Add: Cash…

Answered: Johnson Corporation has the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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