Answer and Explanation:
The preparation of cash collection budget is shown below:-
                             Cash Collection Budget
                For the month of January through March
                                     January         February         March          Quarter
Cash sales                   $43,500      $37,500           $58,500      $139,500
Collection on Credit sales
20% month of sale       $20,300      $17,500        $27,300      $65,100
40% month after            $33,600     $40,600       $35,000      $109,200
24% two months after    $17,640        $20,160        $24,360        $62,160
Total Cash collection      $115,040      $115,760      $145,160        $375,960
Working Note 1 
                    November        December       January     February     March
Total Sales   $105,000          $120,000       $145,000    $125,000   $195,000
Cash sales   $31,500            $36,000       $43,500     $37,500     $58,500
Credit sales   $73,500            $84,000       $101,500      $87,500     $136,500
Credit sales is 70% of Total sales every month
Cash Sales is 30% of Total sales every month
Working Note 2
                             January        February       March         Quarter
Cash sales            $43,500      $37,500      $58,500        $139,500
Cash collection from credit sales of
November            $17,640                                                 $17,640
December          $33,600      $20,160                               $53,760
January                $20,300     $40,600        $24,360         $85,260
February                                   $17,500       $35,000         $52,500
March                                                          $27,300            $27,300
Total collections  $115,040     $115,760      $145,160           $375,960