Lion Heart Company was organized on March 1, 2006. Projected sales for each of the first three months of operations are as follows:
March ........ $400,000
April ........ 480,000
May ......... 425,000
The company expects to sell 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month of the sale, 30% in the month following the sale, and the remainder in the second month following the sale.
Prepare a schedule indicating cash collections from sales for March, April, and May.