Stylish Interiors operates a mail-order business that sells home decor items. It had sales of $520,000 in March. Because Stylish Interiors is in the mail-order business, all sales are made on account. The company expects a 35 percent drop in sales for April. The balance in the Accounts Receivable account on March 31 was $70,000 and is budgeted to be $45,000 as of April 30.

Requirements:

1. Calculate the expected cash collections from accounts receivable during April for Stylish Interiors.
2. Analyze how customer purchasing behavior might influence the expected sales decline in April for Stylish Interiors.