4- XYZ Company makes collections on sales according to the following schedule:

	Expected Sales
February	$ 112,000
March	$ 150,000
April	$ 100,000

50% in the month of sale

20% in the month following sale 30% in the second month following sale

The Treasury Manager conducts an analysis of the cash collection and determines that cash collection target for April should be $275,000.

(a) Do you agree with collection target of April?

(b) Why and why not?

(c )Present your Cash Collection Schedule for February to April