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3. Ellis Sport Emporium projects the following sales: April $75,000 May June $95,000 $100,000 Seventy percent of Ellis' sales are on credit with 60 percent of receivables collected in the month after the sales and the rest of receiva bles collected in the second month after the sale. February sales were $60,000 and March sales were $70,000. In the past Ellis' bad debt percentage has been zero ($0) and is expected to continue. Prepare a monthly schedule of cash receipts for April-June Now, what is the balance of receivables at the end of June? a. b. 4. King, Inc. a successful Midwest firm, is considering opening a branch office on the West Coast. Under normal economic conditions, with a 45% probability of occurring. King can expect to earn a net income of $70,000 per year. In a mini-recession, at 25% probability, King will earn $20,000. In a severe recession, at a 20 % probability, King will lose $15,000. There is also a slight probability (10 % ) that King will lose $300,000 if the expansion fails an the branch office must be closed. Should King open a branch office in California based on these assumptions? Construct a matrix to derive the Expected Level of Income using the different economic scenarios and probabilities

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