Home Corporation Will Open a New Store on January 1

Multiple Choice

Home Corporation will open a new store on January 1. Based on experience from its other retail outlets, Home Corporation is making the following sales projections: Home Corporation estimates that 70% of the credit sales will be collected in the month following the month of sale, with the balance collected in the second month following the month of sale. In a cash budget for April, the total cash receipts will be:

A) $74,000
B) $57,000
C) $114,000
D) $97,000