Problem - Budgeted sales of swimsuits for Kerrigan Co. for the first six months of the year 2017 are as follows:

Months           Unit Sales

January          600,000

February         820,000

March             1,050,000

April               1,720,000

May                1,250,000

June               925,000

The beginning accounts receivable for 2017 is $125,000. Sales price per unit averages $55 per suit. The historical pattern of cash receipts is that 20% of the swimsuits are sold for cash. Of those sold on credit, 75% are collected within the month of sale, and 25% are collected the following month. Credit sales are the only source of accounts receivable.

Required: Prepare a cash receipts budget for each month, January through June.