Morgan Company's budgeted income statement reflects the following amounts: Sales Purchases Expenses January $119,000 $77,000 $23,900...

 

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Morgan Company's budgeted income statement reflects the following amounts: Sales Purchases Expenses January $119,000 $77,000 $23,900 February 109,000 65,000 24,100 March 124,000 80,250 26,900 April 129,000 83,500 28,500 Sales are collected 50% in the month of sale, 20% in the month following sale, and 29% in the second month following sale. One percent of sales is uncollectible and expensed at the end of the year. Morgan pays for all purchases in the month following purchase and takes advantage of a 1% discount. The following balances are as of January 1: Cash $87,000 Accounts receivable* 57,000 Accounts payable 71,000 * Of this balance, $22,800 will be collected in January and the remaining amount will be collected in February. The monthly expense figures include $4,900 of depreciation. The expenses are paid in the month incurred. Morgan's expected cash balance at the end of January is: Morgan Company's budgeted income statement reflects the following amounts: Sales Purchases Expenses January $119,000 $77,000 $23,900 February 109,000 65,000 24,100 March 124,000 80,250 26,900 April 129,000 83,500 28,500 Sales are collected 50% in the month of sale, 20% in the month following sale, and 29% in the second month following sale. One percent of sales is uncollectible and expensed at the end of the year. Morgan pays for all purchases in the month following purchase and takes advantage of a 1% discount. The following balances are as of January 1: Cash $87,000 Accounts receivable* 57,000 Accounts payable 71,000 * Of this balance, $22,800 will be collected in January and the remaining amount will be collected in February. The monthly expense figures include $4,900 of depreciation. The expenses are paid in the month incurred. Morgan's expected cash balance at the end of January is: