Johnson Corporation has the following sales forecasts for the first three months of the current year: Month Sales January $39,000 February 26,000 March 45,000 85% of sales are collected in the month of the sale and the remainder is collected in the following month. Accounts receivable balance (January 1) Cash balance (January 1) Minimum cash balance needed $25.800 25.000 22.000 What is the cash balance at the end of January, assuming that cash is received only from customers and that $50,000 is paid out during January?
Johnson Corporation has the following sales forecasts for the first three months of the current year: Month Sales January $39,000 February 26,000 March 45,000 85% of sales are collected in the month of the sale and the remainder is collected in the following month. Accounts receivable balance (January 1) Cash balance (January 1) Minimum cash balance needed $25.800 25.000 22.000 What is the cash balance at the end of January, assuming that cash is received only from customers and that $50,000 is paid out during January?
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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