M7 Inc budgeted sales are as follows March $175,000 April $200,000 May $275,000 M7 inc sales are 25% and 75% credit. It collects credit sales 25% in the month of sale, 35% in the month of following sale and 35% in the second month following sale; 5% are uncollectible.

In the month of May, how much cash was collected from April sales? a) 200,000 b)50,000 c) 52,500 d) 150,000

In the month of May, how much cash was collected from May sales? a)120,313 b)51,563 c)68,750 d) 275,000