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.)
|