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 $45,000 and $75,000, respectively. The company expects to collect 45% of its credit sales in the month of the sale and the remaining 55% in the following month. What is the expected cash collections from credit sales during the first month?

Multiple Choice $20,250 $24,750 $18,750 $30,250