Question:

ABC Inc. is constructing its cash budget. December sales were $5,900. Monthly sales are expected to be $5,000 in January, $5,400 in February, and $4,800 in March. 40% of its customers pay in the first month and take the 2% discount, while the remaining 60% pay in the month following the sale and do not receive a discount. The firm has no bad debts. Purchases for the next months sales are constant at 50% of the projected sales for the current month. Other payments, which include wages, rent and taxes, are 25% of sales for the current month. Construct a cash budget for the quarter.

Can someone please double check my work. I made a table, but I am not sure if I did the ending receivables part correctly. Do i just multiply the sales by 60% to get the ending receivables, which is then equal to the beginning receivables for the following year? Also, I am not sure how to finish the problem. thank you!

	Dec	Jan	Feb	March
Beginning Receivables	0	3,540	3,000	3,240
Sales	5,900	5,000	5,400	4,800
Received this Month	2,312.80	1,960.00	2,116.8	1,881.60
Total Cash Collection	2,312.8	5,500	5,116.8	5,121.6
Ending Receivables	3,540	3,000	3,240.00	2,880.00