Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects cash sales of $37,500 and $41,500, respectively. It also expects credit sales of $57,500 and $67,500, respectively. The company expects to collect 45% of its credit sales in the month of the sale, 50% in the following month, and 5% is deemed uncollectible. What amount of cash collections would appear in the company’s cash budget for the second month?
Multiple Choice
$97,750
$100,625
$101,250
$30,375