9 .

The sales for Re-Works Inc., a company that fabricates iron fencing from recycled metals, are all on account. For the first three months of the year, Re-Works management expects the following sales:

January: $120,000

February: $130,000

March: $140,000

Based on past collection patterns, management expects the following:

Month of sale: 10%

Month after sale: 50%

Remainder- Second month after sale: 40%

10 .

With the same sales forecasts as in question 9, Re-Works Inc. management would like to implement some changes to credit policy and credit terms that they believe would change the collection pattern going forward and would lower the uncollectible accounts prediction to 3 percent.

Month of sale: 15%

Month after sale: 55%

Remainder: 30%

Bad Debt Expense: 3%

What would be the expected cash receipts for March?