MONTH SALES MONTH SALES

January 58,000 March 70,000

February 64,000 April (projected) 58,000

Jimmie's micro brewery is located in downtownRuston, Louisiana in a restored section of the old Ford dealership. Jimmie sells his beer both to retail customers that visit his brewery and also distributes his line of craft beers through M. L. Keith Food Distributors.Jimmie's wholesale distributor purchases his beer on credit which amounts to about50% of thebrewery's total sales. Firm sales were roughly evenly split between credit and cashsales, with 25 percent of the credit sales collected in the month after the sale and the remainder 2 months after the sale. Historical and projected sales for the brewing company are givenhere:

a. Under thesecircumstances, what should the balance in accounts receivable be at the end ofApril?

b. How much cash didJimmie's realize during April from sales andcollections?