Johnson Corporation has the following sales forecasts for the first three months of the current year: Month Sales January $39,000 February 26,000 March 45,000 85% of sales are collected in the month of the sale and the remainder is collected in the following month. Accounts receivable balance (January 1) Cash balance (January 1) Minimum cash balance needed $25.800 25.000 22.000 What is the cash balance at the end of January, assuming that cash is received only from customers and that $50,000 is paid out during January?
Johnson Corporation has the following sales forecasts for the first three months of the current year: Month Sales January $39,000 February 26,000 March 45,000 85% of sales are collected in the month of the sale and the remainder is collected in the following month. Accounts receivable balance (January 1) Cash balance (January 1) Minimum cash balance needed $25.800 25.000 22.000 What is the cash balance at the end of January, assuming that cash is received only from customers and that $50,000 is paid out during January?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 18E
Related questions
Question
![Johnson Corporation has the following sales forecasts for the first three
months of the current year:
Month
Sales
January
$39,000
February
26,000
March
45,000
85% of sales are collected in the month of the sale and the remainder is
collected in the following month.
Accounts receivable balance (January 1)
Cash balance (January 1)
Minimum cash balance needed
$25.800
25.000
22.000
What is the cash balance at the end of January, assuming that cash is received
only from customers and that $50,000 is paid out during January?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0003e0cc-54b1-4978-b715-1bea5ea030ae%2F3e901e80-8fb1-48ab-a76c-3a1921c4eb7b%2Fv7qej_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Johnson Corporation has the following sales forecasts for the first three
months of the current year:
Month
Sales
January
$39,000
February
26,000
March
45,000
85% of sales are collected in the month of the sale and the remainder is
collected in the following month.
Accounts receivable balance (January 1)
Cash balance (January 1)
Minimum cash balance needed
$25.800
25.000
22.000
What is the cash balance at the end of January, assuming that cash is received
only from customers and that $50,000 is paid out during January?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Intermediate Financial Management (MindTap Course…](https://www.bartleby.com/isbn_cover_images/9781337395083/9781337395083_smallCoverImage.gif)
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Intermediate Financial Management (MindTap Course…](https://www.bartleby.com/isbn_cover_images/9781337395083/9781337395083_smallCoverImage.gif)
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning