1.Budgeted sales for the 2^nd quarter operations are shown in the following table:

Sales	April	May	June
Cash Sales	$ 500
Sales on Account	$ 800

The company expects a 25% increase in sales per month for May and June. Also, the company expects to collect cash from receivables in the month following the month in which the receivables are established. The amount of accounts receivable appearing on the pro forma balance sheet would be

$1,981.25.

$4,956.25.

$1,250.00

$3,050.00

1a.The total amount of cash collected in May would be

$1,625.00.

$1,425.00.

$4,956.25.

$2,031.25.