7. On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the companys sales are made on account. The following information has been provided by Spicers management.

Month Credit Sales January $ 300,000 (actual)

February 400,000 (actual)

March 718,000 (estimated)

April 530,000 (estimated)

May 800,000 (estimated)

The companys collection activity on credit sales historically has been as follows.

Collections in the month of the sale 50 %

Collections one month after the sale 30

Collections two months after the sale 15

Uncollectible accounts 5

Spicers total cash expenditures for March, April, and May have been 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. No financing or investing activities are anticipated during the second quarter.

Compute Spicers budgeted cash balance at the ends of March, April, and May.