Problem: Cash receipts budget. Prescott Co. has actual sales for January and February and forecasted sales for March, April, May and June as follows:
Actual:
January $294,000
February 315,000
Forecasted:
March 342,000
April 282,000
May 366,000
June 321,000
Based on past experience, it is estimated that 40% of a month's sales is collected in the month of sale, 50% is collected in the month following the sale, and 9% is collected in the second month following the sale.
Required:
Calculate the estimated cash receipts for March, April, and May.