Ivanhoe Gear Company, a rapidly growing distributor of camping equipment, is formulating its plans for the coming year. DonaldRobinson, the firms marketing director, has completed the following sales forecast.

Month		Sales		Month		Sales
January		$980,000		July		$1,915,000
February		1,015,000		August		1,915,000
March		980,000		September		1,650,000
April		1,210,000		October		1,650,000
May		1,550,000		November		1,815,000
June		1,915,000		December		2,015,000

Helen Martin, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. She has gathered the following information.

	All sales are made on credit.
	Ivanhoes excellent record in accounts receivable collection is expected to continue, with 70 percent of billings collected in the month after sale and the remaining 30 percent collected in the second month after the sale.
	Cost of goods sold, Sedonas largest expense, is estimated to equal 45 percent of sales dollars. 80 of inventory is purchased one month prior to sale and 20 percent during the month of sale. For example, in April, 20 percent of April cost of goods sold is purchased and 80 percent of May cost of goods sold is purchased.
	All purchases are made on account. Historically, 80 percent of accounts payable have been paid during the month of purchase, and the remaining 20 percent in the month following purchase. Prepare the cash receipts budget for the second quarter.