The LaGrange Corporation had the following budgeted sales for the first half of the current year:

		Cash Sales		Credit Sales
January	$	50,000	$	150,000
February	$	55,000	$	170,000
March	$	34,000	$	130,000
April	$	29,000	$	114,000
May	$	39,000	$	200,000
June	$	80,000	$	80,000

The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:

Collections on sales:

40% in month of sale

30% in month following sale

30% in second month following sale

The accounts receivable balance on January 1 of the current year was $65,000, of which $54,000 represents uncollected December sales and $11,000 represents uncollected November sales.

What is the budgeted accounts receivable balance on May 31?

Garrison 16e Rechecks 2017-10-03, 2017-10-31

Multiple Choice

• $143,200

• $120,000

• $154,200

• $297,400