Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales.

March $50,000

June $56,000

April 59,000

July 67,000

May 41,000

August 71,000

Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 5 percent are uncollectible, 50 percent are collected in the month of sale, 40 percent are collected in the following month, and 5 percent are collected two months after sale.

Prepare a monthly cash receipts schedule for the firm for March through August.

Simpson Glove Company

Cash Receipts Schedule

January Feb. Mar. Apr. May. June. Jul. Aug.

Sales

Collections of current sales

Collections of prior month's sales

Collections of sales 2 months earlier

Total cash receipts