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 $42,000 and $62,000, respectively. The company expects to collect 35% of its credit sales in the month of the sale and the remaining 65% 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

$21,700

$49,000

$40,300

$36,400