Sound Investments, Inc. is a large retailer of stores equipment. The controller is about to prepare the budget for the first quarter of 20x2. Past experience has indicated that 75 percent of the store's sales are cash sales. The collection experience for the sales on account is as follows:
80 percent during month of sale
15 percent during month following sale
5 percent uncollectible
The total sales for December 20x 1 are expected to be $190,000. The controller feels that sale in january20x2 could range from $100,000 to $160,000

Required
1. Demonstrate how financial planning can be used to project cash receipts in January of 20x2 for three Different levels of January sales. Use the following column format.
2. How could the controller of Sound Investments, Inc. use this financial planning approach to help in.