Question
On January 1, Easton Company had cash on hand of $120,000.All of January's $248,000 sales were on account. December sales of $230,000 were also all
On January 1, Easton Company had cash on hand of $120,000.All of January's $248,000 sales were on account. December sales of $230,000 were also all on account.Experience has shown that Easton typically collects 25% of receivables in the month of the sale and the balance the following month.All materials and supplies are purchased on account and Easton has a history of paying for half of these purchases in the month of purchase and half the following month.Such purchases were $177,000 for December and $154,000 for January.All other expenses including wages are paid in the month incurred.These amounted to $42,000 in December and $52,000 in January.Use this information to determine the projected ending balance of cash on hand for January. (Round answer to the nearest whole dollar)
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