Sillvar Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below. April May June Quarter Total Budgeted sales (all on account) $ 300,000 $ 500,000 $ 200,000 $ 1,000,000 From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts that are uncollectible from customers are negligible and can be ignored. February sales totalled $230,000, and March sales totalled $260,000. Exhibit #1 Sillvar Company Schedule of Expected Cash Collections Cash Collected Cash Collected Cash Collected April May June Total February sales . ................. March sales . April sales May sales. . . June sales ..... Total cash collections