Thompson Manufacturing Supplies' projected sales for the first six months of 2006 are given below.
Jan. $250,000
April $400,000
Feb. $300,000
May $450,000
Mar. $400,000
June $400,000
40% of sales are collected in the month of the sale, 50% are collected in the month following the sale, and 10% are written off as uncollectible. Cost of goods sold is 70% of sales. Purchases are made the month prior to the sales and are paid during the month the purchases are made (i.e. goods sold in March are bought and paid for in February). Total other cash expenses are $50,000/month. The company's cash balance as of February 1, 2006 will be $40,000. Excess cash will be used to retire short-term borrowing (if any). Thompson has no short term borrowing as of February 28, 2006. Assume that the interest rate on short-term borrowing is 1% per month. The company must have a minimum cash balance of $25,000 at the beginning of each month. Round all answers to the nearest $100. What is Thompson's projected gross profit for April?