1. Miller Corporation has the following sales budget for the first four months of the current year:

Month	Sales
January	$400,000
February	$320,000
March	$440,000
April	$360,000

Historically, the following trend has been established regarding cash collection of sales:

65% in month of sale

25% in month following sale

8% in second month following sale

2% uncollectible

The company allows a 2% cash discount for payments made by customers during the month of the sale. November and December sales were $400,000 and $240,000, respectively. All sales are on account.

Required: Prepare a schedule of budgeted cash collections from sales for January, February, and March.