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Sound Investments, Incorporated, is a large retailer of stereo equipment. The controller is about to prepare the budget for

the first quarter of $202.$ Past experience has indicated that $70$ percent of the store's sales are cash sales. The collection

experience for the sales on account is as follows:

$80$ percent during month of sale

$15$ percent during month following sale

$5$ percent uncollectible

The total sales for December $201$ are expected to be $$191,000.$ The controller feels that sales in January $202$ could

range from $$101,000$ to $$161,000.$

Required:

Demonstrate how financial planning can be used to project cash receipts in January of $202$ for three different levels of January

sales. Use the following columnar format.

Answer is complete but not entirely correct.