6.Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $48,000 and $80,000, respectively. The company expects to collect 60% of its credit sales in the month of the sale and the remaining 40% in the following month. What amount of cash collections from credit sales would the company include in its cash budget for the second month?

Multiple Choice

• $48,000

• $67,200

• $32,000

• $76,800

7.

Assume a merchandising companys estimated sales for January and February are $100,000 and $120,000, respectively. Its cost of goods sold is always 40% of its sales. The company always maintains ending merchandise inventory equal to 10% of next months cost of goods sold. The companys required merchandise purchases for February are $47,600. What must be the companys estimated sales for March?

Multiple Choice

• $110,000

• $140,000

• $130,000

• $100,000