Kneeling Corporation has the following sales forecasts for the first three months of the current year: Month Sales
January $36,000
February 24,000
March 40,000
In the month of the sale 65% of sales are collected, and the remainder is collected in the following month. $$\begin{array} { l r }
\text { Accounts receivable balance (January 1) } & \$ 22,800 \
\text { Cash balance (January 1) } & 30,000 \
\text { Minimum cash balance needed } & 20,000
\end{array}$$ What is the cash balance at the end of January, assuming that cash is received only from customers and that $48,000 is paid out during January?

Question

Kneeling Corporation has the following sales forecasts for the first three months of the current year: Month Sales
January $36,000
February 24,000
March 40,000
In the month of the sale 65% of sales are collected, and the remainder is collected in the following month. $$\begin{array} { l r } 
\text { Accounts receivable balance (January 1) } & \$ 22,800 \
\text { Cash balance (January 1) } & 30,000 \
\text { Minimum cash balance needed } & 20,000
\end{array}$$ What is the cash balance at the end of January, assuming that cash is received only from customers and that $48,000 is paid out during January?

Quizplus · Accepted Answer

The Answer of Kneeling Corporation has the following sales forecasts for the first three months of the current year: Month Sales
January $36,000
February 24,000
March 40,000
In the month of the sale 65% of sales are collected, and the remainder is collected in the following month. $$\begin{array} { l r } 
\text { Accounts receivable balance (January 1) } & \$ 22,800 \
\text { Cash balance (January 1) } & 30,000 \
\text { Minimum cash balance needed } & 20,000
\end{array}$$ What is the cash balance at the end of January, assuming that cash is received only from customers and that $48,000 is paid out during January?

Kneeling Corporation Has the Following Sales Forecasts for the First