TB MC Qu$.13-85($Algo$)$ The Model Company is to begin operations in April...

The Model Company is to begin operations in April. It has budgeted April sales of $$54,000,$ May sales of $$58,000,$ June sales of $$64,000,$ July sales of $$66,000,$ and August sales of $$62,000.$ Note

that $10\%$ of each month's sales is expected to represent cash sales; $75\%$ of the balance is expected to be collected in the month following the sale, $17\%$ the second month, $6\%$ the third month, and the

balance is expected to be uncollectible.

The Model Company is considering charging $\frac{11}{2}\%$ on any balance that is not collected in the month following the month of sale. This charge would also change the collection percentages to $15\%$

cash sales, $80\%$ of the balance collected in the month following the sale, $16\%$ the second month, and $3\%$ the third month. This stricter credit policy will reduce the estimated sales budgets by $7\%$ each

month. Under this stricter credit policy, what is the amount of cash to be collected in July?

Multiple Choice

$$56,926$

$$61,572$

$$58,426$

$$63,189$