Empire Records Incorporated is a music retail store that began operations on January 1, Year 1. The company has budgeted sales as indicated in the following table. The company expects a 5 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March. The company expects 50% of the sales on account to be collected in the month of sale with the remaining 50% collected in the month following the sale.

Required: What are the expected total cash receipts for the month of February?

Complete the sales budget by filling in the missing amounts. What are the expected total cash receipts for the month of February