Exercise $23\mathrm{.}9($Algo$)$ Budgeting an Ending Cash Balance $($LO$23-4,$ LO$23-5)$

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

January $ $300,000($actual$)$

February $400,000($actual$)$

March $473,000($estimated$)$

April $671,000($estimated$)$

May $800,000($estimated$)$

The company$$s 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 $5$

Spicer$$s total cash expenditures for March, April, and May have been estimated at $$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 Spicer$$s budgeted cash balance at the ends of March, April, and May.