4. Center Company makes collections on sales according to the following schedule:

30% in the month of sale

60% in the month following sale

8% in the second month following sale

The following sales are expected:

	Expected Sales
January	$	100,000
February	$	120,000
March	$	110,000

Cash collections in March should be budgeted to be:

a.) $110,000.

b.) $110,800.

c.) $105,000.

d.) $113,000.

5. Tennison Corporation had the following transactions in its first year of operations:

Sales (90% collected in year)	$	1,500,000
Bad debt write-offs		60,000
Disbursements for costs and expenses		1,200,000
Disbursements for income taxes		90,000
Purchases of fixed assets		400,000
Depreciation of fixed assets		80,000
Proceeds from issuance of common stock		500,000
Proceeds from short-term borrowings		100,000
Payments on short-tern borrowings		50,000

What is the cash balance at year end?

a.) $150,000.

b.) $170,000.

c.) $210,000.

d.) $280,000.

6. Page Company makes 30% of its sales for cash and 70% on account. 60% of the account sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following information has been gathered for Page's first year of operations:

Month	1	2	3	4
Total sales	$60,000	$70,000	$50,000	$30,000

Total cash receipts in Month 3 will be:

a.) $52,200.

b.) $53,290.

c.) $50,000.

d.) $51,510.