On March 1 of the current year Spicer Corporation compiled
On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company’s sales are made on account. The following information has been provided by Spicer’s management:
Month Credit Sales
Jan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $300,000 (actual)
Feb. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 (actual)
Mar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 (estimated)
Apr. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... 700,000 (estimated)
May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000 (estimated)

The company’s collection activity on credit sales historically has been as follows:
Collections in the month of the sale . . . . . . . . . . . . . . . . 50%
Collections one month after the sale . . . . . . . . . . . . . . . 30
Collections two months after the sale . . . . . . . . . . . . . . 15
Uncollectible accounts . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Spicer’s total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400,000 per month). Its cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarter.
Compute Spicer’s budgeted cash balance at the ends of March, April, and May.

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