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 $77,000, respectively. The company expects to collect 30% of its credit sales in
the month of the sale and the remaining 70% in the following month. What amount of cash collections from credit
sales would the company include in its cash budget for the second month?
Multiple Choice
$23,100
$51,100
$53,900
$35,100