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CraftCo, Inc.'s projected sales for the first six months of 2012 are given below: jan...

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Finance

CraftCo, Inc.'s projected sales for the first six months of 2012 are given below:

jan 500,000 feb. 740,000 mar. 380,000 april 490,000 may 740,000 june 610,000

40% of sales are collected in cash at time of sale, 50% are collected in the month following the sale, and the remaining 10% are collected in the second month following the sale. Cost of goods sold is 60% of sales. Purchases are made in the month prior to the sales, and payments for purchases are made in the month of the sale. Total other cash expenses are $40,000/month. The company's cash balance as of February 28, 2012 will be $25,000. Excess cash will be used to retire short-term borrowing (if any). CraftCo, Inc. has no short term borrowing as of February 28, 2012. Assume that the interest rate on short-term borrowing is 1% per month. The company must have a minimum cash balance of $15,000 at the beginning of each month. What is CraftCo, Inc.'s total cash receipts for April 2010? $490,000 $460,000 $524,000 $560,000

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