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 $50,000 and $60,000, respectively. The company expects to collect 40% of its credit sales in the month of the sale and the remaining 60% 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

• $54,000

• $24,000

• $44,000

• $36,000