Now assume that ' sales are collected as follows: 60% in the month of the sale (cash sales) 30% in the month after the sale 8% two months after the sale 2% never collected Requirement Prepare a revised schedule for the budgeted cash collections for January and February.

Now assume that Grippers' sales are collected as follows:

60% in the month of the sale (cash sales)

30% in the month after the sale

8% two months after the sale

2% never collected

Requirement

Prepare a revised schedule for the budgeted cash collections for January and February.

(thousands of dollars) Sales Cost of goods sold Gross margin Expenses Selling expense Salaries Commissions Advertising Administrative expenses Rent Depreciation Miscellaneous expenses Total expenses Net income Source: Casewriter 2003 Sales space (square feet) Sales per square foot Sales tickets Average sales ticket $8,583 4,326 $4,257 2,021 429 254 418 420 84 53 $3,679 $ 578 Exhibit 2 Hallstead Jewelers Operating Statistics 2003 10,230 $ 839 5,341 $ 1,607 2004 $8,102 4,132 $3,970 2,081 405 250 425 420 84 93 $3,758 $ 212 2004 10,230 $ 792 5,316 $ 1,524 2006 $10,711 5,570 $ 5,141 3,215 536 257 435 840 142 122 $ 5,547 $ (406) 2006 15,280 $ 701 6,897 $ 1,553