The management team of Campbell Modems, Inc. (CMI) wants to investigate the effect of several different growth rates on sales and cash receipts. Cash sales for the month of January are expected to be $50,000. Credit sales for January are expected to be $250,000. CMI collects 100 percent of credit sales in the month following the month of sale. Assume a beginning balance in accounts receivable of $240,000.

Calculate the amount of sales and cash receipts for the months of February and March assuming a growth rate of 2 percent and 4 percent. The results at a growth rate of 1 percent are shown as an example.

Sales Budget
	Jan				Feb				Mar
Cash sales	$	50,000			$	50,500			$	51,005
Sales on account		250,000				252,500				255,025
Total budgeted sales	$	300,000			$	303,000			$	306,030
Schedule of Cash Receipts
Current cash sales	$	50,000			$	50,500			$	51,005
Plus collections from accounts receivable		240,000				250,000				252,500
Total budgeted collections	$	290,000			$	300,500			$	303,505

Use the following forms, assuming a growth rate of 2 percent and 4 percent: