Pt 2

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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 credit sales of $45,000 and $63,000, respectively. The company expects to collect 45% of its credit sales in the month of the sale and the remaining 55% in the following month. What is the expected cash collections from credit sales during the first month? Multiple Choice $20,250 $24,750 $18,750 $30,250 Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $42,000 and $74,000, espectively. The company expects to collect 35% of its credit sales in the month of the sale and the remaining 65% in the following month. What amount of cash collections rom credit sales would the company include in its cash budget for the second month? Multiple Choice $25,900 $53,200 $48,100 $40,600 Assume a merchandising company provides the following information from its master budget for the month of May: What is the budgeted net operating income? Multiple Choice $5,100 $41,500 $133,100 $118.000