Here are some important figures from the budget of nashville nougats, inc., for the second quarter of 2012: april may june credit sales $547,200 $570,240 $630,720 credit purchases 211,680 252,720 288,710 cash disbursements wages, other expenses 57,240 69,420 72,430 interest 16,410 16,410 16,410 equipment purchases 119,520 131,040 0 the company predicts that 3 percent of its credit sales will never be collected, 36 percent of its sales will be collected in the month of sale, and the remaining 61 percent will be collected in the following month. credit purchases will be paid in the month following the purchase. in march 2012, credit sales were $302,400, and credit purchases were $224,640. the april 1 cash balance was $403,200. what is the cash balance at the end of may

$449,488.4

Explanation:

April:

Beginning cash balance = $403,200

Cash receipts = 36% × sales in April

                       = 0.36 × $547,200

                       = $196,992

Cash collections from credit sales = 61% of sales in March

                                                         = 0.61 × $302,400

                                                         = $184,464

Total cash available = Cash receipts + Cash collections from credit sales + Beginning cash balance

                                  = $196,992 + $184,464 + $403,200

                                  = $784,656

Total cash disbursements:

= Purchases + Wages, taxes, and expenses + Interest + Equipment purchases

= 211,680 + 57,240 + 16,410 + 119,520

= $404,850

Ending cash balance = Total cash available - Total cash disbursements

                                   = $784,656 - $404,850

                                   = $380,000

May:

Beginning cash balance = $380,000

Cash receipts = 36% × sales in May

                       = 0.36 × $570,240

                       = $205,286.4

Cash collections from credit sales = 61% of sales in April

                                                         = 0.61 × $547,200

                                                         = $333,792

Total cash available = Cash receipts + Cash collections from credit sales + Beginning cash balance

                                  =  $205,286.4 + $333,792 + $380,000

                                  = $919,078.4

Total cash disbursements:

= Purchases + Wages, taxes, and expenses + Interest + Equipment purchases

= 252,720 + 69,420 + 16,410 + 131,040

= $469,590

Ending cash balance = Total cash available - Total cash disbursements

                                   = $919,078.4 - $469,590

                                   = $449,488.4

Therefore, the cash balance at the end of May is $449,488.4

i would say iii (3) because in order to compare a price you have to use as a reference other near stores because it's its

hope i explained myself