Laura Falk, Bates & Hill Fabricators’ accounts receivable manager, has just received the company’s sales budget for the first quarter (see Exercise 5.8). The company makes all sales on credit. Laura recently reviewed the company’s collection history and found that 72% of the sales are collected in the month of the sale, 26% of sales are collected in the month following the sale, and 2% of sales are uncollectible. The company expects to have a net accounts receivable balance of $98,200 on January 1, and this amount represents the remaining receivables from December’s sales.

Required

Prepare Bates & Hill’s cash receipts budget for the first quarter.