Question
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. | 570,000 | (estimated) | |
| Apr. | 660,000 | (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 $500,000. No financing or investing activities are anticipated during the second quarter. |
| Compute Spicer's budgeted cash balance at the ends of March, April, and May. (Omit the "$" sign in your response.) |
| Cash balance on March 31 | $ |
| Cash balance on April 30 | $ |
| Cash balance on May 31 | $ |
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