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.