Refer to the Packers schedule of cash receipts from customers that you prepared in Short Exercise S22A-17. Now assume that Packers’s sales are collected as follows:
In short exercise Packers expects total sales of $697,500 for January and $345,000 for February. Assume that Packers’s sales are collected as follows:
50% in the month of the sale
20% in the month after the sale
25% two months after the sale
5% never collected
Prepare a revised schedule of cash receipts for January and February.