532 120 BDL Plc Is Current Preparing Its Cash Budget For The Year To 31 March 2003. An Extract From Its Sales Budget ?

BDL plc is current preparing its cash budget for the year to 31 March 2003. An extract from its sales budget ? - 532 120

for the same year shows the following market values:

March 60,000
April 70,000
May 55,000
June 65,000

40% of sales will probably be made in cash. Credit Sales, 70% are expected to pay in the months after the sale and receive a discount of 2% to 27% are expected to pay the second month following the sale and the remaining 3% should be uncollectable.

The value of the revenues budgeted money for May 2003 is as follows:

A. £ 38,532
B. £ 39,120
C. £ 60,532
D. £ 64,220
E. £ 65,200

Which is correct? 10 points for the best answer. Please tell me how he got it.