Armidale Innovations operations manager, Henry, prepared the following sales budget for the selected months of 2017:

Month                                     Cash Sales ($)                          Credit Sales ($)

January                                 161,000                                       681,000

February                              201,000                                           801,000

March                                181,000                                              741,000

April                                   241,000                                             921,000

May                                  221,000                                              761,000

Cash collections history of the company shows that 41% of all credit sales are collected in the month of sale, 46% are collected in the month following the month of sale, and 11% is collected two months following the month of sale. The remaining 2% is uncollectible and treated as ‘bad debts’.

Required: You work under Henry who asks you to prepare a schedule of cash collections for March, April and May, 2017, showing the total for the three months in the ‘total’ column.

Must use the following format/table (show supporting calculations/working separately before or after the format/table):

                                                                                                   March              April                  May                     Total

Cash Sales …………………….

Collections from credit sales: From current month ………..

From previous month ………

From two months back ……..

Total collections (cash & credit):