Collections

Silver Company makes a product that is very popular as a others gift. Thus, peak sales occur in May of each year. These peak sales are shown in the following sales budget for the second quarter:

	April	May	June	Total
Budgeted Sales	$400,000	$600,000	$300,000	$1,300,000

From past experience, the company has learned that 25% of a months sales are collected in the month of sale, another 65% are collected in the month following the sale, and the remaining 10% are collected in the second month following the sale. Bad debts are negligible and can be ignored. February sales totalled $ 380,000, and March sales totalled $ 360,000.

Required:

Prepare a schedule of expected cash collections from sales, by month and in total for the second quarter