The Lila Steinman Company is preparing a cash receipts schedule for the first quarter of 2005. Sales on account for November and December 2004 are expected to be \($200,000\) and \($400,000\), respectively. Budgeted sales for the first quarter of 2005 are presented here.

Expected collection pattern for sales on account:
10 percent in the month of sale 70 percent in the month following the sale 20 percent in the second month following the sale 0 percent uncollectible Required: Prepare a cash receipts schedule for the first quarter of 2005.

Transcribed Image Text:

Budgeted Cash Sales The Lila Steinman Company Sales Budget For the Quarter Ended March 31, 2005 Budgeted Sales on Account Total Sales Jan $ 20,000 Feb $ 25,000 Mar $ 27,000 180,000 210,000 $235,000 250,000 $277,000 $200,000 Total $ 72,000 640,000 $712,000