Kerwin

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,

Kerwin

Corporation has experienced the following collection pattern:

20% received in the month of the sale

40% received in the month after the sale

24% received two months after the sale

16% of the credit sales are never received

November sales for last year were

$80,000,

while December sales were

$110,000.

Projected sales for the next three months are as follows:

January sales. . . . . . . . . . . . . . .	$160,000
February sales. . . . . . . . . . . . . .	$120,000
March sales. . . . . . . . . . . . . .	$170,000

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.)

Kerwin Corporation

Cash Collections Budget

For the Months of January through March

	January
Cash sales	32,000
Collections on credit sales:
20% Month of sale
40% Month after
24% Two months after
Total cash collections