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$1$

Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales,

March April May

$$54,000$ June $63,000$ July $45,000$ August

$$60,00071,00075,000$

Sales in January and February were $$41,000$ and $$39,000,$ respectively. Experience has shown that of total sales receipts $10$ percent are uncollectible, $45$ percent are collected in the month of sale, $35$ percent are collected in the following month, and $10$ percent are collected two months after sale.

Prepare a monthly cash receipts schedule for the firm for March through August.

Simpson Glove Company Cash Receipts Schedule February January $

$100\%$

March

April

Sales Collections of current sales Collections of prior month's sales Collections of sales $2$ months earlier Total cash receipts

May

June

F