1. 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 is the expected cash collections from credit sales during the first month?

   		$30,000
   		$36,000
   		$20,000
   		$24,000