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The following information pertains to ABC Company: Sales January: $68,000 February: $87,000 March:...

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Accounting

The following information pertains to ABC Company:

Sales

January: $68,000

February: $87,000

March: $106,000

Purchases

January: $35,000

February: $46,000

March: $58,000

Cash is collected from customers in the following manner: 30% in the month of sale and 70% in the month following the sale. 45% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.

Labor costs are 20% of sales. Other operating costs are $32,000 per month (including $8,000 of depreciation). Both of these are paid in the month incurred. The cash balance on March 1 is $8,900. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. What is the ending cash balance for March?

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