Spicer & Co has budgeted its credit sales as follows:

June $ 600,000

July $ 600,000

August $ 800,000

September $ 1,200,000

October $ 1,400,000

November $ 1,600,000

Collections of credit sales are normally as follows:

Collected within 30 days of the end of the month of sale: 50%

Collected in 30-60 days: 30%

Collected in 60-90 days: 15%

Uncollectible: 5%

The cash balance on 1st October is expected to be $200,000. Cash payments are expected to total $800,000 each month for July to November. The cash balance at the end of October is expected to be __________.

Question 16 options:

$1,160,000

none of the options

$330,000

$960,000

$1,400,000