Maxwell Howard, an accountant for Xacto Company has prepared the following sales and cash disbursement estimates for the period February$-$June of the current year.

Assumption$($s$)$

Month Sales Cash Disbursements

February $$550$ $$470$

March $675390$

April $450655$

May $275575$

June $250295$

Percentage of sales in cash is $30\%$

Of credit sales $70\%$ are collected $1$ month after the sale $49\%$

and the remaining $30\%$ are collected $2$ months after the sale $21\%$

Minimum ending balance to be maintained in cash account is $$40$

Balances above this minimum amount would be invested in short$-$term government securities $($marketable securities$).$

Deficits would be financed through short$-$term bank borrowing $($notes payable$)$

The beginning cash balance at April $1$ is $$125\mathrm{.}0$Maxwell Howard, an accountant for Xacto Company has prepared the following sales and cash disbursement estimates for the period February$-$June of the current year.

Assumption$($s$)$

Month Sales Cash Disbursements

February $$550$ $$470$

March $675390$

April $450655$

May $275575$

June $250295$

Percentage of sales in cash is $30\%$

Of credit sales $70\%$ are collected $1$ month after the sale $49\%$

and the remaining $30\%$ are collected $2$ months after the sale $21\%$

Minimum ending balance to be maintained in cash account is $$40$

Balances above this minimum amount would be invested in short$-$term government securities $($marketable securities$).$

Deficits would be financed through short$-$term bank borrowing $($notes payable$)$

The beginning cash balance at April $1$ is $$125\mathrm{.}00$