What amount of cash collections from credit sales company

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Reference no: EM133002568

Problem 1: Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $40,000 and $73,000, respectively. The company expects to collect 30% of its credit sales in the month of the sale, 60% in the following month, and 10% is deemed uncollectible. What amount of cash collections from credit sales would the company include in its cash budget for the second month?

Multiple Choice

Option 1:
$21,900

Option 2:
$45,900

Option 3:
$53,200

Option 4:
$43,800

Reference no: EM133002568

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