Gammaro 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, Gammaro Corporation has experienced the following collection pattern:

$25\%$ received in the month of the sale

$50\%$ received in the month after the sale

$20\%$ received two months after the sale

$5\%$ of the credit sales are never received

November sales for last year were $$80,000,$ while December sales were $$120,000.$ Projected sales for the next three months are

as follows:

January sales............. $..$ $ $155,000$

February sales $..............$ & $130,000$

Requirement

Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter. $($Round your answers to the

nearest whole dollar.$)$

Gammaro Corporation

Cash Collections Budget

For the Months of January through March