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	$	43,000	$	130,000
April	$	38,000	$	123,000
May	$	48,000	$	200,000
June	$	80,000	$	170,000

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:

50% in month of sale

40% in month following sale

10% in second month following sale

The accounts receivable balance on January 1 of the current year was $65,000, of which $42,000 represents uncollected December sales and $23,000 represents uncollected November sales.

The total cash collected during January by LaGrange Corporation would be:

Answers:

• $181,600

• $84,000

• $261,000

• $229,000