Cookies and Cream begins business on January 1 of the
Cookies and Cream begins business on January 1 of the current year and sells delicious chocolate chip cookies for $2.50 per box. The company’s founder and lead marketing guru estimates first-quarter sales (in boxes) as follows:
January ....... 1,500
February ..... 1,200
March ...... 1,600
Total ........ 4,300
Cookies and Cream expects cash to be collected in the following manner:
55 percent of sales collected in month of sale
35 percent of sales collected in month following sale
10 percent of sales collected in second month following sale

Required
Prepare a cash receipts budget for the first quarter. How much will customers owe the company at the end of March if sales are exactly as estimated?

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