Hey guys, I am really struggling with the problem no 2 ( Cash receipts budget ). I tired many times to solve problem number 2, but I dont get the right answer. Please help me by showing the step how you came to the answer. If you cannot show the steps, then please dont even bother to answer becuase I know the answer. My goal here is to learn and understand how you came with the amswer. I have put arrow sign to the right answer, but I dont what number they multiplied to get the answer. Explain please. Thank you

Jack Hanson, the assistant controller, is now preparing a monthly budget for the first quarter of 20x1. In the process, the following information has been accumulated:

1.	Projected sales for December of 20x0 are $400,000. Credit sales typically are 75 percent of total sales. Intercoastals credit experience indicates that 10 percent of the credit sales are collected during the month of sale, and the remainder are collected during the following month.
2.	Intercoastals cost of goods sold generally runs at 70 percent of sales. Inventory is purchased on account, and 40 percent of each months purchases are paid during the month of purchase. The remainder is paid during the following month. In order to have adequate stocks of inventory on hand, the firm attempts to have inventory at the end of each month equal to half of the next months projected cost of goods sold.
3.	Hanson has estimated that Intercoastals other monthly expenses will be as follows:

2016 1 Sales Budget 2015 2016 2016 2016 December January Feburary March 1st Quarter 400,000.00 440,000.00 484,000.00 532,400.00 1,456,400.00 Total Sales (110%) Cash Sales (25%) 100,000.00 110,000.00 121,000.00 133,100.00 364,100.00 Sales on account/credit (75%) 300,000.00 330,000.00 363,000.00 399,300.00 1,092,300.00 2 Cash receipts budget 2016 2016 2016 2016 110,000.00 s 121000.00 s Cash Sales (25%) 133,100.00 364,100.00 Cash collections from credit sales made during current month (30%) 33000.00 S 36,300.00 s 39,930.00 s 109,230.00 Cash collections from credit sales made during preceding month(70%) 231,000.00 s 254,100.00 279,510.00 s 764,610.00 40.00 Cash collections from credit 70,000 7,000 26,700 893.700 sales made during preceding month t