Q9. Cash flow of accounts receivable.Myers andAssociates, a famous law firm inCalifornia, bills its clients on the first of each month. Clients pay in the followingfashion: 40% pay at the end of the firstmonth, 30% pay at the end of the secondmonth, 20% pay at the end of the thirdmonth, 5% pay at the end of the fourthmonth, and5% default on their bills. Myers wants to know the anticipated cash flow for the first quarter of 2015 if the past billings and anticipated billings follow this same pattern. The actual and anticipated billings are asfollows:

Fourth Quarter Actual Billings: Oct. $526,000 Nov. $433,000 Dec $393,000

First Quarter Anticipated Billings: Jan. 460,000 Feb. $479,000 Mar. $534,000

What is the anticipated cash flow for January of 2015 if past billings and anticipated billings follow this samepattern?