A Company's Past Experience Indicates That 60% of Its Credit $$\begin{array} { l r } \text { April } & \$ 250,000 \\\text { May } & 150,000 \\\text { June } & 375,000\end{array}$$

Multiple Choice

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: $$\begin{array} { l r } \text { April } & \$ 250,000 \\\text { May } & 150,000 \\\text { June } & 375,000\end{array}$$ The cash inflow in the month of June is expected to be

A) $282,500.
B) $213,750.
C) $225,000.
D) $270,000.