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5. A company’s past experience indicates that 60% of its credit sales
are collected in the month of sale, 30% in the next month, and 5 % in
the second month after the sale; the remainder is never collected.
Budgeted credit sales were:
July
August
September
$120,000
72,000
180,000
The cash inflow in the month of September is expected to be
a. $135,600
b. $102,600
c. $108,000