I would like to know how to calculate the cash balance, beginning; the answers are provided below but I do not where that number comes from, I know that the ending balance of Feb. is the beginning balance of March, where does "344" in March come from. Please help me find the formulato calculate the "cash balance, beginning" of March - June

1. Imagine, Inc. is a company that re-sells one product, a particularly comfortable lawn chair. An overseas contractor makes the product exclusively for Imagine, so Imagine has no manufacturing-related costs. 2. As of 11/19, each lawn chair costs Imagine $4 per unit. Imagine sells each chair for $10 per unit 3. The estimated sales (in units) are as follows: Year Month Sales (in units) 2018 November 11,250 2019 December 11,600 2020 January 10,000 2020 February 11,400 2020 March 12,000 2020 April 15,600 2020 May 18,000 2020 June 22,000 2020 July 18,000 1. Per an existing contract, the cost of each chair is scheduled to increase by 5% on March 1, 2020. In addition, because of increasing costs of plastic webbing, the cost is anticipated to increase by an additional 5%% on May 1, 2020. To offset these increases, the company plans to raise the sales price to $11.25 per unit beginning May 1, 2020. The sales forecast (1.e.. estimated sales in units) takes this price increase into account. 5. Thirty percent of any month's sales are for cash, and the remaining 70% are on credit. Thirty percent of the credit sales are collected in the month of sale, 50% are collected in the following month, and 16% are collected in the second month after the sale. The remaining receivables are deemed uncollectible. Bad debts are written off in the month the debt is deemed uncollectible (e.g. if the sale is made in January and is not collected by the end of March, it is written off in March.) No accrual for estimated bad debts is made in the month of sale. The firm's policy regarding inventory is to stock (i.e. have in ending inventory) 40% of the forecasted demand in units (L.e., estimated sales) for the next month. Imagine uses the first- in, first-out (FIFO) method in accounting for inventories. 7. Forty percent of the inventory purchases are paid for in the month of purchase and the remaining 60% are paid in the following month (Le. all of the previous month's Accounts Payable are paid off by the end of any month.) B. Per a prior contract, a cash payment of $50,000 for equipment previously purchased is due in January. Another payment of $30,000 is due in February. Depreciation on the equipment previously purchased is included in the overhead cost detailed below (see item 9). Also. dividends of $12,000 are to be paid in March. 9. Monthly operating expenses consist of the following (if these are cash expenses, they are paid when incurred):Salaries and Wages $3,000 Sales Commissions 7% of sales revenue Rent 38,000 Other Variable Cash Expenses 6% of sales revenue Supplies Expense: See note $2,000 Other: See note $48,000 Note: Other general and administrative overhead is expected to be $48,000 per month. Of this amount, $24,000 represents depreciation and other non-cash expenses. The company maintains on hand one month's worth of supplies. 10. The company must maintain a minimum cash balance of $15,000. Borrowing can make up shortfalls. For simplicity, assume that the bank will only lend (and accept repayments) in $1,000 Increments. Ignore interest on the loan in your calculations, but minimize the amount borrowed and pay off any loans as soon as possible. 11. Cash on hand as of December 31, 2019 is expected to be $15,000, In addition, there will be no notes payable as of this date. 12. See below the other Balance Sheet accounts with their expected balances as of December 31, 2019: 2.000 Property, Plant and Equipment .....1,060,090 Accumulated Depreciation 120.=10101926,475 ..200,090 Retained Earnings.... .010 1422,811Heron, Inc. Cash Budget For the 6 mos ending June '10 01 12 Jan '10 Feb '10 Mar '10 Apr '10 May $10 June '10 $ mos total 03 Cash balance, beginning 15,000 $ 15,000 15.344 1 $ 15,529 $ 15,887 $ 15,571 $ 92,331 M4 Add collections from customers 104.200 106, 132 112,300 134.328 171,315 214.572 S 842.847 15 Total cash available 119,200 121, 132 127.644 149,857 187,202 230, 143 935, 178 16 Less disbursements: Cash disbursements for merchandise purch 43,200 43,968 50.515 61.690 76,306 87.847 $ 363,526 Cash disbursements for operating expenses 50,000 51.820 52,600 57.280 63,325 69. 175 344.200 Equipment purchases 50,000 30,000 80,000 Dividends 12,000 12,000 Total cash disbursements 143.200 125,788 115,115 118,970 139.631 157,022 799.726 2 Excess of receipts over disbursements (24,000] (4,656) 12.529 30.887 47.571 73, 121 135,452 Financing: Borrowing-note 39,000 20,000 3,000 62,000 15 Repayments-note (15,000) (32,000) (15,000) (62,000) Total financing 39,000 20,000 3,000 (15,000) (32,000) (15,000) 17 Cash balance, ending 15,000 $ 15.344 $ 15,529 $ 15,887 $ 15,571 $ 58, 121 $ 135,452 18