were made up of:

April sales ($550,000 from sales of $550,000)

March sales ($47,000 from sales of $470,000)

February sales ($31,800 from sales of $530,000)

January sales ($8,500 from sales of $340,000)

Bad debts are negligible. All January sales outstanding will have been collected by the end of May, and the collection pattern since time of sale will be the same as in previous months.

Prepare a cash forecast in good form for the month of May 19_5 showing the net cash surplus or deficiency for the month. Ignore income taxes. . . Comment briefly on the treasurer’s statement quoted at the beginning of the question.

 L01