Flowerama specializes in floral arrangements and experiences its highest sales and delivery volume on February 14. Below is the first quarter sales budget for Flowerama:

	January	February	March	Total
Budgeted sales (all on account)	$400,000	$600,000	$190,000	$1,190,000

From prior years data, the company predicts that 30% of a months sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. Prior years sales are as follows: November sales totaled $330,000, and December sales totaled $360,000.

Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the first quarter. 2. What is the accounts receivable balance on March 31th?

Prepare a schedule of expected cash collections from sales, by month and in total, for the first quarter.

Schedule of Expected Cash Collections
	January	February	March	Total
November sales
December sales
January sales
February Sales
March Sales
Total cash collections