The following is the sales budget for the given months of Hecto, Ltd.:

	Cash Sales	Credit Sales
May	$59,000	$283,000
June	$43,000	$236,000
July	$33,000	$205,000
August	$47,000	$268,000
September	$46,000	$197,000

Additional information to be used determining the expected cash collections each month that will be used in preparing the cash budget:

Collections on Credit sales:

• 50% in month of sale
• 20% in month following sale
• 30% in second month following sale

The Accounts Receivable balance on May 1 was $53,000. Of this amount, $41,000 represented uncollected April sales and $12,000 represented uncollected March sales. Part 1:

What is the expect cash to be collected in May? $_________?

Part 2:

The budgeted Accounts Receivable on September 1 would be:

A. $195,500

B. $202,900

C. $178,900

D. $224,900

E. $173,300