On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company's sales are made on account. The following information has been provided by Spicer's management. Month Credit Sales $ 300,000 (actual 400,000 (actual) 700,000 (estimated) 750,000 (estimated) 800,000 (estimated) January February March April May 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 50% 30 15 Spicer's total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400,000 per mon cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second q Compute Spicer's budgeted cash balance at the ends of March, April, and May. Cash balance on March 31 Cash balance on April 30 Cash balance on May 31
On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company's sales are made on account. The following information has been provided by Spicer's management. Month Credit Sales $ 300,000 (actual 400,000 (actual) 700,000 (estimated) 750,000 (estimated) 800,000 (estimated) January February March April May 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 50% 30 15 Spicer's total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400,000 per mon cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second q Compute Spicer's budgeted cash balance at the ends of March, April, and May. Cash balance on March 31 Cash balance on April 30 Cash balance on May 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cash balance help
Transcribed Image Text:Exercise 23.9 (Algo) Budgeting an Ending Cash Balance (LO23-4, LO23-5)
On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the
company's sales are made on account The following information has been provided by Spicer's management.
Month
Credit Sales
$ 300,000 (actual)
400,000 (actual)
700,000 (estimated)
750,000 (estimated)
800,000 (estimated)
January
February
March
April
May
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
50%
30
15
Spicer's total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400,000 per month
cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second qua
Compute Spicer's budgeted cash balance at the ends of March, April, and May.
Cash balance on March 31
Cash balance on April 30
Cash balance on May 31
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