Brandon Wholesalers has found that 80% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Brandon Wholesalers has experienced the following collection pattern:

25% paid in the month of the sale

50% paid in the month after the sale

20% paid two months after the sale

5% of the sales are never collected

November sales for last year were $100,000, while December sales were $120,000.

Projected sales for the next three months are as follows:

January sales…………………………………………………………………………….. $160,000

February sales …………………………………………………………………………… $125,000

March sales………………………………………………………………………………. $180,000

Requirement

Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter.

Brandon Wholesalers has found that 80 of its sales in