Avril Company makes collections on sales according to the following schedule: 30% in the month of sale

60% in the month following sale 8% in the second month following sale

The Treasury Manager conducts an analysis of the cash collection and determines that cash collection target for March should be $150,000. (a) Do you agree with collection target or March? (b) Why and why not? Present your recommendation.

January February ..... March. Expected Sales $100,000 $120,000 $110,000