Exercise $23\mathrm{.}9($Algo$)$ Budgeting an Ending Cash Balance $($LO$23-4,$ LO$23-5)$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.

The company's collection activity on credit sales historically has been as follows.

Collections in the month of the sale

Collections one month after the sale

Collections two months after the sale

Uncollectible accounts

$50\%$

$30$

$15$

$5$

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.

Answer is complete but not entirely correct.

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

January $ $300,000($actual$)$

February $400,000($actual$)$

March $473,000($estimated$)$

April $671,000($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.