Mitchell Company had the following budgeted sales for the first half of next year: January...
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Mitchell Company had the following budgeted sales for the first half of next year: January February March April May June Cash Sales $40.000 $45,000 $47.000 $52,000 $62.000 $70,000 Credit Sales $140.000 $160,000 $120,000 $147,000 $190.000 $370,000 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 credit sales: 30% in month of sales 135% in month of following sales 35.0% in second month following sales Assume that the accounts receivable balance on January 1 was $87.000. Of this amount. $70.000 represented uncollected December sales and $17.000 represented uncollected November sales. Given these data, the total cash collected during January would be 0 $100.000 O $199.000 O $207.000 O $134.000
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