Cheroke Company had an accounts receivable balance of $16,000 at December 31, 2013. Projected sales for the first three months of 2014 are:

January

$120,000

February

130,000

March

100,000

All sales are credit sales. Cheroke Company usually collects 40% of its sales during the month of sale, 50% in the month following the sale, and 10% in the second month following the sale.

Given the information above, cash collections during February should be:

Correct Answer:The answer cannot be determined

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