Response to the following problem:
Nassau Products is preparing a cash budget for April. The following information on accounts receivable collections is available from past collection experience:
Percent of current month's sales collected this month . . . . . . . . . . . . . . . . . . . . . . 25%
Percent of prior month's sales collected this month . . . . . . . . . . . . . . . . . . . . . . . . 62
Percent of sales two months prior to current month collected this month . . . . . . . 7
Percent of sales three months prior to current month collected this month . . . . . . 4
The remaining 2 percent is not collected and is written off as bad debts. Credit sales to date are:
April-estimated . . . . . . . . . . . . . . $300,000
March . . . . . . . . . . . . . . . . . . . . . . . . 270,000
February . . . . . . . . . . . . . . . . . . . . . . 240,000
January . . . . . . . . . . . . . . . . . . . . . . . 285,000
Required:
What are the estimated cash receipts from accounts receivable collections in April?