Please answer the following questions & provide supporting calculations:

The LaPann Company has obtained the following sales forecast data:

	July	August	September	October
Cash sales..............	$80,000	$70,000	$50,000	$60,000
Credit sales............	$240,000	$220,000	$180,000	$200,000

The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts.

(You may wish to review some basics from Acctg 1A Financial Accounting if you took the class a long time ago. The financial budgets draw heavily from transaction analysis, GAAP, & grasp of financial statements.

1. The budgeted accounts receivable balance on September 30 is:

a) $126,000

b) $148,000

c) $166,000

d) $190,000

2. The budged cash receipts for October are:

a) $188,000

b) $248,000

c) $226,000

d) $278,000

You should use the most efficient calculations to arrive at the answer. Hence, a complete spreadsheet or similar layout is NOT recommended. These are quiz type questions where the answers should be solved rather quickly & directly through identifying just the relevant variables and processing them via very few steps.