Katniss operates an archery supplies store. Her sales revenue is as shown below. We anticipate that 75% of our customers pay cash; of the credit sales, 80% pay their account in the month of sale, 15% pay in the month following sale and 5% in the month after that.

Sales:

Jan $10,000

Feb $18,000

Mar $20,000

April $21,000

May $20,000

June $28,000

July $26,000

Aug $25,000

We also have the following expenses (below). Salaries are paid in cash in the month incurred. Our suppliers allow us 60 days to pay. As a result, purchases of product are paid in full (in cash) the second month following purchase. There are no discounts.

MONTH	Salaries	Product
Jan	3,000	8,000
Feb	3,000	12,000
Mar	3,000	9,000
Apr	3,000	10,000
May	3,000	12,000
June	3,000	12,000
July	3,500	12,000
Aug	3,500	18,000

What is the total cash collected (from all sources) in April?

How much cash is paid out (for all items) in March?

Assume that Katniss began January with a zero balance in Accounts Payable. What is her Accounts Payable balance at the end of April?

For this question, assume Katniss had no sales in November or December of last year and that she had a zero Accounts Receivable balance at January 1.

What is her Accounts Receivable balance at the end of January?

For this question, assume Katniss had no sales in November or December of last year and that she had a zero Accounts Receivable balance at January 1.

What is her Accounts Receivable balance at the end of February?