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On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company's

On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company's sales are made on account. The following information has been provided by Spicer's management:

Month

Credit Sales

Jan.

$

300,000

(actual)

Feb.

400,000

(actual)

Mar.

667,000

(estimated)

Apr.

855,000

(estimated)

May

800,000

(estimated)

The company's collection activity on credit sales historically has been as follows:

Collections in the month of the sale

50

%

Collections one month after the sale

30

Collections two months after the sale

15

Uncollectible accounts

5

Spicer's total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400,000 per month). Its cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarter.

Compute Spicer's budgeted cash balance at the ends of March, April, and May.

Cash balance on March 31

Cash balance on April 30

Cash balance on May 31

sheet is drawn here

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