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HolidayHoliday Corporation has found that 6060 % of its sales in any given month are credit sales, while the remainder are cash sales. Of the

HolidayHoliday

Corporation has found that

6060 %

of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales,

HolidayHoliday

Corporation has experienced the following collection pattern:

25% received in the month of the sale

50% received in the month after the sale

16% received two months after the sale

9% of the credit sales are never received

November sales for last year were

$ 90 comma 000$90,000 ,

while December sales were

$ 115 comma 000$115,000.

Projected sales for the next three months are as follows:

January sales. . . . . . . . . . . . . . . .

$145,000

February sales. . . . . . . . . . . . . . .

$125,000

March sales. . . . . . . . . . . . . . . . .

$180,000

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.)

Holiday Corporation

Cash Collections Budget

For the Months of January through March

January

Cash sales

Collections on credit sales:

25% Month of sale

50% Month after

16% Two months after

Total cash collections

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