Band Instruments Company has the following sales budget for the first three months of the current year:
|
Month
|
Sales Revenue
|
|
January
|
$600,000
|
|
February
|
150,000
|
|
March
|
440,000
|
Historically, the following trend has been established regarding cash collection of sales:
65 percent in month of sale
25 percent in month following sale
8 percent in second month following sale
2 percent uncollectible
November and December sales were $100,000 and $200,000, respectively.
Required: Prepare a schedule of budgeted cash collections from sales for January, February, and March.