The Company Is in the Process of Preparing a Cash

Multiple Choice

$\begin{array}{lcc}&\text { Cash Sales} &\text { Credit Sales}\\ \text { January } & £ 80,000 & £ 350,000 \\ \text { February } & 60,000 & 200,000 \\ \text { March } & 50,000 & 145,000 \\ \text {April}& 45,000 & 130,000 \\ \text { May}& 55,000 & 170,000 \\ \text { June}& 50,000 & 150,000 \\\end{array}$ The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:Collections on credit sales:
$60 \%$ in month of sale
$30 \%$ in month following sale
$10 \%$ in second month following sale
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Assume that the accounts receivable balance on January 1 is £70,000. Of this amount, £60,000 represents uncollected December sales and £10,000 represents uncollected November sales. Given these data, the total cash collected during January would be

A) £270,000.
B) £420,000.
C) £345,000.
D) £360,000.