Marsha Start is looking to restart a home economics related business after an unfortunate incarceration.She forecasts that sales for June,July,and August will be $100,000,$150,000,and $80,000,respectively.Start expects for cash sales to make up 25% of the sales in each month with 90% of the credit sales collected in the month after the sale and the remainder 2 months after the sale.What is Start's estimated total cash collections in August for June sales?
A) $7,500
B) $101,750
C) $133,750
D) none of the above
Correct Answer:
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