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A Company's Past Experience Indicates That 60% of Its Credit

Question 175

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: 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: The cash inflow in the month of June is expected to be A) $226,000. B) $171,000. C) $180,000. D) $216,000. The cash inflow in the month of June is expected to be


A) $226,000.
B) $171,000.
C) $180,000.
D) $216,000.

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