d . Reduce the risks of errors
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 $ 120,000
August 72,000
September 180,000
The cash inflow in the month of September is expected to be
a . $ 135,600
b . $ 102,600
c . $ 108,000