A company began operations on January 1. Sales are budgeted as $170,000 for February. Receivables at January

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A company began operations on January 1. Sales are budgeted as $170,000 for February. Receivables at January 31 were $25,000. Collections are expected to be 60% in the month of sale, 30% the next month, and 10% in the next.

A) Budgeted cash collections for February are $25,000.

B) Budgeted cash collections for February are $54,000.

C) Budgeted cash collections for February are $120,750.

D) Budgeted cash collections for February are $127,000

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Intermediate Financial Management

ISBN: 978-1111530266

11th edition

Authors: Eugene F. Brigham, Phillip R. Daves

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Question Posted: Apr 07, 2017 10:41 AM

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A company began operations on January 1. Sales are budgeted as $170,000 for February. Receivables at January

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Option D is right 60of the monthly sale...View the full answer

Intermediate Financial Management

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