Required information TES. 415 Inc, is a retailer. Its accountants are preparing the company's 2 nd quarter master budget. The company has the following balance sheet as of March 31. TES 415 accountants have made the following estimates: 1. Sales for April, May, June, and July will be $250,000,$270,000,$260,000, and $280,000, respectively. 2. All sales are on credit. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts recelvable at March 31 will be collected in April. 3. Each month's ending inventory must equal 30% of next month's cost of goods sold. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase ond the remaining 60% in the month following the purchase. All of the accounts TES- 415 accountants have made the following estimates: 1. Sales for April, May, June, and July will be $250,000,$270,000,$260,000, and $280,000, respectively. 2. All sales are on credit. Each month's ctedit sales are collected 35% in the month of sale and 65.6 in the month following the sale. All of the accounts recekable at March 3 wi will be collected in Apri. 3. Each month's ending inventory must equal 30\% of next month's cost of goods sold. The cost of goods sold is 75% of sales, The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at March 31 are related to previous merchandise purchases and will be paid in April. 4. Monthly selling and administrative expenses are always $46,000. Eoch month 55,000 of this total amount is depreciation expense and the remaining \$,41,000 is spent for expenses that are pald in the month they are incurred. 5. The company will not borrow money or pay or declare dividends during the znd quarter. The company will not issue any common stock or repurchase is own stock during the 2 nd quarter. How mych is the companyrs expected cash collections in the month of Moy? Muniple Choice $175,500 $257,000 562.500 $54.500