Information on the actual sales and inventory purchases of the Law Company for the first...
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Accounting
Information on the actual sales and inventory purchases of the Law Company for the first quarter follow:
Inventory Sales
Purchases
January
$106,000
$60,000
February
$92,000
$72,000
March
$120,000
$92,000
Collections from Law Company's customers are normally 60% in the month of sale, 30% in the month following sale, and 8% in the second month following sale. The balance is uncollectible. Law Company takes full advantage of the 2% discount allowed on purchases paid for by the end of the following month. The company expects sales in April of $150,000 and inventory purchases of $109,000. Operating expenses for the month of April are expected to be $36,000, of which $15,000 is salaries and $8,000 is depreciation. The remaining $13,000 of operating expenses are variable with respect to the amount of sales in dollars. Those operating expenses requiring a cash outlay are paid for during the month incurred. Law Company's cash balance on March 1 was $42,000, and on April 1 was $35,200.
What would be the expected cash balance on April 30?
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