Which of the following statements is true? Only statement 1 is true. Only statement 2 is true. Both statements are true. Neither statement is true. 1. Cash collections in a schedule of cash collections typically consist of collections on sales made to customers in prior periods plus collections on sales made in the current budget period. 2. The number of units to be produced in a period can be determined by adding the expected sales to the desired ending inventory and then deducting the beginning inventory.

Which of the following statements is true? 1. Cash collections in a schedule of cash collections typically consist of collections on sales made to customers in prior periods plus collections on sales made in the current budget period. 2. The number of units to be produced in a period can be determined by adding the expected sales. to the desired ending inventory and then dedueting the beginning inventory. Only statement 1 is true. Only statement 2 is true. Both statements are true. Neither statement is truc