The management team of Finch Modems, Incorporated (FMI) 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 $70,000. Credit sales for January are expected to be $350,000. FMI collects 100 percent of credit sales in the month following the month of sale. Assume a beginning balance in accounts receivable of $336,000. Required 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. Cash sales Sales on account Total budgeted sales Sales Budget January $ 70,000 350,000 February $ 70,700 353,500 March $ 71,407 357,035 $ 420,000 $ 424,200 $ 428,442 Schedule of Cash Receipts January February March 70,000 70,700 336,000 350,000 406,000 420,700 71,407 353,500 424,907 Current cash sales Plus collections from accounts receivable Total budgeted collections Use the following forms, assuming a growth rate of 2 percent and 4 percent: Complete this question by entering your answers in the tabs below. 2 percent 4 percent Calculate the amount of sales and cash receipts for the months of February and March assuming a growth rate of 4 percent. Sales Budget January Growth rate of 4% February March Cash sales $ Sales on account 70,000 350,000 Total budgeted sales $ 420,000 Schedule of Cash Receipts Growth rate of 4% January February March Current cash sales $ 70,000 Plus collections from accounts receivable 336,000 Total budgeted collections $ 406,000 2 percent 4 percent