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The forecasted sales pertain to Acme, Inc.: Month Sales January $ 900,000 February 1,000,000 March 600,000 April 400,000 Collection pattern: 70 percent in month of

The forecasted sales pertain to Acme, Inc.:

Month Sales
January $ 900,000
February 1,000,000
March 600,000
April 400,000

Collection pattern: 70 percent in month of sale; 30 percent in month following the sale

Accounts Receivable (December 31): $140,000

Finished Goods Inventory (December 31): 160,000

The company has a selling price of $10 per unit and expects to maintain ending inventories equal to 35 percent of the next month's sales.

Calculate the amount of cash that Acme expects to collect in February?

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