Fielding corporation has found that 60% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, fielding corporation has experienced the following collection pattern:

20% received in the month of the sale

40% received in the month after the sale

22% received two months after the sale

18% of the credit sales are never received

November sales for last year were $85,000, while december sales were $110,000. Projected sales for the next three months are as follows:

January sales $160,000

February sales $135,000

March saes $185,000

Requirement

Prepare a cash collections budget for the first quater, with a column for each month and for the quarter.

January

cash sales
Collections on credit sales
20% month of sale
40% month after
22% received two months after the sales
Total cash collections