Ch. 9 - Cash Collections Homework
Thirst Quencher sells plastic bottles to outdoor enthusiasts for $1.25 each. The companys marketing manager prepared the following sales forecast (in dollars) for the first half of the year:
	January	187,000
	February	156,250
	March	225,000
	April	206,250
	May	206,250
	June	193,750
	Total	1,174,500
Historically, the cash collection of sales has been as follows: 55% of sales collected in month of sale, 35% collected in month following sale, and 9 percent of sales collected in second month following sale. The remaining 1% is never collected because customers do not pay.
Required:
Prepare a cash receipts budget for each month of the second quarter (April, May, and June). Include subtotals for each month and the total for the quarter.