Britney Spears Inc. sells waterbeds has made the following sales projections for the next six months. All sales are credit sales.

March	$	46,000	June	$	50,000
April		52,000	July		58,000
May		41,000	August		60,000

Sales in January and February were $49,000 and $48,000 respectively.

Experience has shown that 10 percent of total sales are uncollectible, 25 percent are collected in the month of sale, 35 percent are collected in the following month, and 30 percent are collected two months after sale.

a. Prepare a monthly cash receipts schedule for the firm for March through August.

Britney Spears Inc. Cash Receipts Schedule

January

February

March

April

May

June

July

August

Sales

$

$

$

$

$

$

$

$

Collections of current sales

Collections of prior month's sales

Collections of sales 2 months earlier

Total cash receipts

$

$

$

$

$

$

b. Of the sales expected to be made during the six months from March to August, how much will still be uncollected at the end of August? How much of this is expected to be collected later?

	Amount
Uncollected	$
Expected to be collected	$