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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
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.
E. None of these.
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