The management team of Stuart Modems, Inc. (SMI) 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 $160,000. Credit sales for January are expected to be $800,000. SMI collects 100 percent of credit sales in the month following the month of sale. Assume a beginning balance in accounts receivable of $768,000 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. Mar Feb $161,600 808,000 5969,600 $ 163,216 816.00 $979, 296 Sales Budget Jan Cash sales $160,000 Sales on account 800,000 Total budgeted sales 5960,000 Schedule of Cash Receipts Current cash sales $160,000 plus collections from accounts receivable 768,000 Total budgeted collections $161,600 300,000 5961,600 $163,216 800.000 $971,216 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 2 percent. Sales Budget Growth rate of 2% Feb $ Cash sales Sales on account Total budgeted sales Jan 160,000 800,000 960.000 $ Schedule of Cash Receipts Current cash sales $ 160,000 Plus collections from accounts receivable 768.000 Total budgeted collections $ 928,000 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 Growth rate of 4% Feb Mar Jan $ Cash sales Sales on account Total budgeted sales 160,000 800,000 960.000 S Schedule of Cash Receipts Current cash sales 160,000 Plus collections from accounts receivable 768.000 Total budgeted collections $ 928.000