The Model Company is to begin operations in April. It has budgeted April sales of $58,000....

  

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The Model Company is to begin operations in April. It has budgeted April sales of $58,000. May sales of $62,000, June sales of $68,000, July sales of $70,000, and August sales of $66,000, 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 1 1/2 % 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? Round all calculations to the nearest whole dollar. Multiple Choice $60,530. $67,194 $62.124 $65,469 The Model Company is to begin operations in April. It has budgeted April sales of $58,000. May sales of $62,000, June sales of $68,000, July sales of $70,000, and August sales of $66,000, 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 1 1/2 % 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? Round all calculations to the nearest whole dollar. Multiple Choice $60,530. $67,194 $62.124 $65,469

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