Jian is preparing a cash budget for February 20X6. Of the budgeted monthly sales, 75% are on credit. Of the credit sales, 90% are collected in the month of the sale, 5% are collected in the month following the sale and 3% are collected in the second month following the sale. 2% are never collected and are written off. Below are the budgeted sales for the months of November, December, January and February.

December 262 000

January 239 000

February 225 000

Required:

What is the total of cash receipts expected for February 20X6?

Prepare a schedule of expected cash receipts from sales for February 20X6 for Jian. Show all calculations.