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

		Cash Sales		Credit Sales
January	$	90,000	$	190,000
February	$	95,000	$	210,000
March	$	30,000	$	170,000
April	$	25,000	$	110,000
May	$	35,000	$	240,000
June	$	120,000	$	40,000

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 $50,000 represents uncollected December sales and $15,000 represents uncollected November sales.

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

Garrison 16e Rechecks 2017-10-03, 2017-10-06

Multiple Choice

• $325,000

• $250,000

• $100,000

• $240,000