The LaGrange Corporation had the following budgeted sales for the first half of the current year:
Cash Sales Credit Sales
January $ 30,000 $ 130,000
February $ 35,000 $ 150,000
March $ 36,000 $ 110,000
April $ 31,000 $ 116,000
May $ 41,000 $ 180,000
June $ 60,000 $ 100,000
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
Collections on sales are 50% in month of sale, 40% in month following sale, and 10% in second month following sale.
Assume that the Accounts receivable on January 1 is $65,000, of which $50,000 represents uncollected December sales and $15,000 represents uncollected November sales. Given these data, the total cash collected during January would be: