Shiller Corporation has the following sales forecasts for the selected three-month period in 2014: All sales are on account. Seventy percent of sales are collected in the month of the sale, and the remainder are collected in the following month.
Minimum cash balance is $10,000. Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges).
What is the cash balance at the end of July, assuming that cash is received only from customers and that $40,000 is paid out during July?

Question

Shiller Corporation has the following sales forecasts for the selected three-month period in 2014:  All sales are on account. Seventy percent of sales are collected in the month of the sale, and the remainder are collected in the following month.
 Minimum cash balance is $10,000. Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges).
What is the cash balance at the end of July, assuming that cash is received only from customers and that $40,000 is paid out during July?

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The Answer of Shiller Corporation has the following sales forecasts for the selected three-month period in 2014:  All sales are on account. Seventy percent of sales are collected in the month of the sale, and the remainder are collected in the following month.
 Minimum cash balance is $10,000. Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges).
What is the cash balance at the end of July, assuming that cash is received only from customers and that $40,000 is paid out during July?

Shiller Corporation Has the Following Sales Forecasts for the Selected