Beata Corp. has the following sales forecasts for the selected three-month period in the current year:
Month Sales
- April $10,000
- May 9,000
- June 11,000
Sixty percent of sales are collected in the month of the sale, and the remaining balance is collected in the following month.
Accounts Receivable balance (April 1) $11,000
Cash balance (April 1) 4,000
Minimum cash balance is $2,500. Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges). Calculate the expected cash balance at the end of April, assuming that cash is received only from customers and that $15,000 is paid out during April?