Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March April May $ 42,009 June 48,000 July 37,000 August $ 46,000 54,000 56,000 Sales in January and February Were $45.000 and $44,000 respectively. Experience has shown that 10 percent of total sales are uncollectible, 30 percent are collected in the month of sale, 40 percent are collected in the following month, and 20 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August January $45.000 Ed's Waterbeds Cash Receipts Schedule February March $ 44,000 $ 42.000 12.600 17.600 9,000 Sales Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier $ April $ 48.000 14,400 16.800 8.800 May 37.000 11.100 19.200 8,400 $ 39.200 5 40.000 $ 38.700 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? Uncollected Expected to be collected Amount $ 28.300 $