The V&A Velez Company is preparing a cash receipts schedule for the first quarter of 2004. Sales for November and December 2003 are expected to be \($300,000\) and \($310,000\), respectively. Budgeted sales for the first quarter of 2004 are presented here.

Ten percent of sales are for cash; the remaining 90 percent are on account. Twenty percent of the sales on account are collected in the month of the sale, 70 percent in the month following the sale, and the remaining 10 percent in the second month following the sale.
There are no uncollectible accounts receivable.
Required: Prepare a cash receipts schedule for the first quarter of 2004.

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Budgeted Sales The V&A Velez Company Sales Budget For the Quarter Ended March 31, 2004 Jan $220,000 Feb $290,000 Mar $340,000 Total $850,000