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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
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 $25,000 and $41,500, respectively. It also expects credit sales of $51,500 and $61,500, 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?
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$48,175
$23,175
$64,675
$41,500
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