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Fallor Corporation collects 40% of a month's sales in the month of sale, 35% in the month following sale, and 25% in the second month

Fallor Corporation collects 40% of a month's sales in the month of sale, 35% in the month following sale, and 25% in the second month following sale. Budgeted sales for the upcoming five months are:

March $50,000
April $45,000
May $30,000
June $55,000
July $30,000

The amount of cash that will be collected in May is budgeted to be

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$42,500

$46,250

$45,250

$40,250

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