Management at Breaker Corp. Expects an Accounts Receivable collection pattern of 80 percent in the month of sale, 15 percent in the month after sale, and 5 percent in the second month after sale. All sales are on credit and Breaker Corp. Has rarely had any uncollectible Accounts Receivable. Actual sales for the last two months of 2009, and budgeted sales for the first quarter of 2010 follow:
November December January February March
2009 2009 2010 2010 2010
$680,000 $925,000 $864,000 $732,000 $788,000
Required:
Prepare Breaker Corp's cash collections budget for the first quarter of 2010.