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Question - Management at Breaker Corp. Expects an accounts receivable collecion pattern of 80 percent in the month of sale. 15 percent in the month after sale, and 5 percent in the second month after sale. All sales are on credit and Brker Corp. Has rarely an any uncollectable accounts receivable. Actual sales for the last two months of 2009, and budgeted sales for the first quarter of 2010 follow:
November 2009 = $680,000
December 2009 = $925,000
January 2010 = $864, 000
February 2010 = $732,000
March 2010 = $ 788, 000
Required: Prepare Breaker Coprs cash collection budget for the first quarter of 2010.
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