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Sales forecasts for the selected three-month period

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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.

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Solution Summary

This solution calculates the cash balance for a selected three-month period at Beata Corp.

Solution Preview

Cash Receipt from customer
= $11,000 + 60% * 10000
= ...

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