The financial manager of Hearty Cereals is in the process of preparing a cash budget for the first quarter of 2015.The firm typically sells 1/3 of its monthly sales on cash terms and the rest on credit. An analysis of the accounts receivables shows that on average 40% of the sales are collected in the next month, 50% in 60 days, 7% in 90 days, with the rest ending up as bad debts. As the manager's assistant it is your job to project the sales receipts for the first quarter of 2015, using the monthly sales figures listed below.
2014 Sales
October .............................. $1,750,000
November ........................... $2,000,000
December ........................... $2,450,000
2015 Forecasted Sales
January ............................. $1,850,000
February ............................ $1,650,000
March ............................... $1,900,000