Refer to the Environmental Business Consultants (EBC) illustration on page 1037 in the chapter. Assume that local governments (EBC's target market) are experiencing a sharp reduction in the collection of tax revenues due to a recession in the general economy. EBC anticipates that this will impact the timeliness of payments made by its clients be- ginning in April as shown below:

a. In the month of sale. 10% is collected. 

b. In the month following sale, 30% is collected. 

c. In the second month following sale, 30% is collected.

d. In the third month following sale, 20% is collected. The remaining 10% of ac- counts receivable will be written off as uncollectible. 

Note that payments related to the February and March sales that have yet to be col- lected will be impacted by the recession also. For example, 10% of the February sales were collected in February, 50% were collected in March, but only 30% will be collected in April (not 38%), and the remaining 10% will be written off. Further, 10% of the March sales were collected in March, but only 30% will be collected in April (not 50%), 30% will be collected in May, and 20% will be collected in June. Assume that all other fore- casted data remain the same. Assume that because of the recession, EBC has temporarily eliminated its policy of maintaining a cash balance of \($500,000.\) 

Required 

1. Recompute the forecasted cash collections for the quarter ended June 30, 2019.

2. Prepare a new cash budget reflecting these new cash collections.