41.

To forecast budgeted cash collections for May use the following assumptions:

- Each months sales are billed on the last day of the month.

- Customers are allowed a 2% discount if payment is made within ten days after the billing date.

- 50% of the billings are collected within the discount period, 35% are collected by the end of the month, 9% are collected by the end of the second month, and 6% prove uncollectable.

Actual and projected sales are as follows:

Month Dollars

March $270000

April 277200

May 282 060

Budgeted cash collections during May are:

Select one:

a.

$232848

b.

$259920

c.

$264051

d.

$257148

e.

none of the above