E22-27 Preparing a financial budget - schedule of cash receipts, sensitivity analysis Armand Company projects the following sales for the first three months of the year: $10,600 in January; \$12,300 in February; and \$12,900 in March. The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1 . Round to the nearest dollar. Requirements 1. Prepare a schedule of cash receipts for Armand for January, February, and March. What is the balance in Accounts Receivable on March 31? 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31? Requirement 1 \begin{tabular}{|l|l|l|l|l|} \hline Schedule of Cash Receipts from Customers & January & February & March & Total \\ \hline Total Sales & $10,600 & & & \\ \hline & & & & \\ \hline Cash Receipts from Customers & & & & \\ \hline Accounts Receivable Balance, January 1 & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline Calculate and show below the Accounts Receivable & & & & \\ \hline Balance as of March 31 & & & & \\ \hline \end{tabular} Requirement 2