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Exhibit 9-1 Sporting Inc. is a distributor which sells one product for $100 per unit. Sporting pays $60 to buy the product. In addition, fixed

Exhibit 9-1 Sporting Inc. is a distributor which sells one product for $100 per unit. Sporting pays $60 to buy the product. In addition, fixed costs total $60,000 per month. Sporting wishes to maintain an inventory at the end of each month equal to 30% of the next month's projected sales. Purchases are paid in the month after purchase. Sporting makes all sales on credit and collects 40% in the month of sale and 60% in the month after sale. Budgeted monthly sales in units for the first five months of 2021 are as follows:

January

10,000 units

February

15,000 units

March

18,000 units

April

20,000 units

May

16,000 units

Refer to Exhibit 9-1. What will cash collections be in April?

Group of answer choices

$1,880,000

$2,060,000

$2,000,000

$1,920,000

None of the answer choices is correct.

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