Coyote Loco, Inc., a distributor of salsa, has the following historical collection pattern for its credit sales.

70 percent collected in the month of the sale

15 percent collected in the first month after sale

10 percent collected in the second month after sale

4 percent collected in the third month after sale

1 percent uncollectable

The sales on account have been budgeted for the last seven months as follows:

June: $122,500

July: $150,000

August: $175,000

September: $200,000

October: $225,000

November: $250,000

December: $212,500

1. Compute the estimated total cash collections during October from Credit Sales.

2. Compute the estimated total chash collections during the fourth quarter from sales made on account during the fourth quarter.

3. Construct an Excel Spreadsheet to solve both of the preceding requirements. Show how the solution will change if the following information changes: sales in June and July were $100,000 and $130,000 respectively.