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)	$320,000	$520,000	$180,000	$1,020,000

From prior years data, the company predicts that 30% of a months sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 5% 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 $250,000, and December sales totaled $280,000.

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?

• Required 1
• Required 2

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				$0
December sales				0
January sales				0
February Sales				0
March Sales				0
Total cash collections	$0	$0	$0	$0

What is the accounts receivable balance on March 31st?

Total accounts receivable at March 31