Problem:
Pioneer square carpet specialties has found that cash collections from customers tend to occur in the following pattern
Collected within cash discount period in month of sale 50%
Collected within cash discount period in first month after month of sale 10%
Collected after cash discount period in first month after month of sale 25
Collected after cash discount period in second month after month of sale 12
Never collected 3%
Total sales in any month (before cash discounts) 100%
Cash discount allowable as a percentage of invoice price 1%
Compute the total cash budgeted to be collected in March if sales are predicted as $300,000 for January, $400,000 for February, and $450,000 for March.