Anderson Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Anderson Corporation has experienced the following collection pattern:

20% received in the month of the sale

40% received in the month after the sale

22% received two months after the sale

November sales for last year were $95,000, while December sales were $115,000. Projected sales for the next three months are as follows:

January sales.	$175,000
February sales	$130,000
March sales. . .	$200,000

Requirement

Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter.

Anderson Corporation

Cash Collections Budget

For the Months of January through March

	January
Cash sales
Collections on credit sales:
20% Month of sale
40% Month after
22% Two months after
Total cash collections