Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects cash sales of $30,000 and $40,000, respectively. It also expects credit sales of $50,000 and $60,000, respectively. The company expects to collect 40% of its credit sales in the month of the sale, 55% in the following month, and 5% is deemed uncollectible. What amount of cash collections would appear in the companys cash budget for the second month?

Multiple Choice

• $89,000

• $24,000

• $93,000

• $91,500