Dear Friends,
I am really confused about this question. Anybody to help me?
Regards
The following information concerns Montero Corp.
|
Purchases
|
Sales
|
|
|
|
January
|
$42,000
|
$72,000
|
February
|
48,000
|
66,000
|
March
|
36,000
|
60,000
|
April
|
54,000
|
78,000
|
Collections from Montero Corp.'s customers are normally 70% in the month of sale, and 20% and 9%, respectively, in the 2 months following the sale. The balance is uncollectible. Montero takes full advantage of the 2% discount allowed on purchases paid for by the 10th of the following month. Purchases for May are budgeted at $60,000, and sales for May are forecasted at $66,000. Cash disbursements for expenses are expected to be $14,400 for the month of May. Montero's cash balance at May 1 was $22,000.
What was Montero's cash balance on April 1, assuming cash disbursements for expenses increased 20% from April to May?
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TIMUCIN ONER
Director/Manager
ANTALYA
Turkey
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