| Part 1-Cash Budget |
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| 97% of sales are credit sales. Accounts Receivable are collected at 35% of sales |
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| the month of sale, 40% the following month, and 25% the third month. |
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| Sales for January: |
$475,000 |
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| Sales for February: |
525,000 |
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| Sales for March |
532,000 |
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| Sales for April |
516,000 |
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| Prepare cash collections for March and April |
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| From sales in |
Total |
% Collected |
March |
April |
| January |
| February |
| March |
| April |
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| Total Collected |
