Reference no: EM132792447

Rome Company will open a new store on January 1. Based on experience from its other retail outlets, Rome is making the following sales projections:

                                             Cash Sales                     Credit Sales

January..................                       $60,000                  $40,000

February.................                              $30,000            $50,000

March.....................                          $40,000               $60,000

April.......................                               $40,000             $80,000

Rome Company estimates that 70% of the credit sales will be collected in the month following the month of sale, and the remaining 30% will be collected in the second month following the month of sale.

Problem 1: Rome's budgeted total cash receipts for April will be:

A - $97,000

B - $74,000

C - $114,000

D - $57,000