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 $29,000 and $45,500, respectively. It also expects credit sales of $55,500 and $65,500, respectively. The company expects to collect 45% of its credit sales in the month of the sale, 50% in the following month, and 5% is deemed uncollectible. What amount of cash collections would appear in the companys cash budget for the first month?

Multiple Choice

• $53,975

• $24,975

• $70,475

• $45,500