Celina is developing a forecast for cash receipts for the first quarter of the year. Credit sales for the quarter are estimated to be $640,000. The Accounts Receivable balance from the fourth quarter of the prior year is $600,000. All other accounts receivable from the prior year have been collected or written off. On average, collections of 50% occur during the quarter, 30% in the next quarter, and 15% two quarters after a sale. At the end of the year, 5% are written off as uncollectible.
Calculate the budgeted cash receipts for the first quarter from credit sales.