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Austin Company has the following sales forecasts for the selected three-month period in the current year: 1. Month April May June Sales $24,000 14,000 16,000

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Austin Company has the following sales forecasts for the selected three-month period in the current year: 1. Month April May June Sales $24,000 14,000 16,000 Collection pattern: 65% of sales are collected in the month of the sale, 35% is collected in the following month. Accounts Receivable balance (April 1): $20,000 Cash balance (April 1): $10,000 Minimum cash balance is $10,000. Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges). Calculate the expected cash balance at the end of April, assuming that cash is received only from customers and that $37,000 is paid out during April? 2. EMJB Company sells three products with the following seasonal sales pattern: Products: Quarter A 10% 4096 30% 20% 30% 20% 20% 40%

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