Sophisticates, Inc., a distributor of jewelry throughout California, is in the process of assembling a cash budget for the first quarter of 20x1. The following information has been extracted from the company's accounting records All sales are on account. Sixty percent of customer accounts are collected in the month of sale; 35 percent are collected in the following month. Uncollectibles amounting to 5 percent of sales are anticipated, and management believes that only 20 percent of the accounts outstanding on December 31, 20x0, will be recovered and that the recovery will be in January 20x1 . Seventy percent of the merchandise purchases are paid for in the month of purchase; the remaining 30 percent are paid for in the month after acquisition. . The December 31, 20xO, balance sheet disclosed the following selected figures: cash, $65,000; accounts receivable, $175,000; and accounts payable, $68,000. Sophisticates, Inc., maintains a $65,000 minimum cash balance at all times Financing is available (and retired) in $1,000 multiples at an 9 percent interest rate, with borrowings taking place at the beginningof the month and repayments occurring at the end of the month. Interest is paid at the time of repaying principal and computed on the portion of principal repaid at that time. Additional data: January February March Sales revenue Merchandise purchases Cash operating costs Proceeds from sale of $470,000 $560,000 $575,000 440,000 95,000 74,000 137,000 290,000 320,000 17,000 equipment Required: Prepare a schedule that discloses the firm's total cash collections for January through March 1. January February March Collection of accounts receivable Collection of January sales Collection of February sales Collection of March sales Sale of equipment Total cash collections