Reference no: EM133121751

Question - Brights purchases and installs sky lights.  The entity's estimated sales and expenses for the fist 4 months of 2017 are:

Month	Sales	Expenses
January	$1135	$212
February	$1505	$212
March	$838	$212
April	$829	$212

Actual sales for November and December 2016 were $917 and $724 respectively and actual expenses were $212 for each month.

All sales are on credit, and the firm estimates that 33% of the accounts receivable will be collected in the month after sale with the other 67% collected the second month following sale.  The average selling price for the products sold is $6.  The cash balance as at 1 January 2017 is expected to be $1258.

The firm pays for 30% of its purchases in the month after purchase and the balance is paid in the second month following purchase.  Average gross profit margin is 56%.  The firm plans to continue maintaining an end-of-month inventory equal to 37% of the next month's projected cost of sales.  Depreciation amounting to $131 per month and wages of $166 are included in the monthly expenses of 212.  Other expenses are paid during the month they are incurred.

Required - Prepare a monthly schedule of expected cash receipts for the first quarter of 2017 and enter the total cash receipts in the month of February?