The LaGrange Corporation had the following budgeted sales for the first half of the current year:

Cash Sales Credit Sales
January $40,000 $140,000
February $45,000 $160,000
March $39,000 $120,000
April $34,000 $119,000
May $44,000 $190,000
June $70,000 $130,000

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 sales:
55% in month of sale
40% in month following sale
5% in second month following sale

The accounts receivable balance on January 1 of the current year was $82,000, of which $63,000 represents uncollected December sales and $19,000 represents uncollected November sales. The total cash collected during January by LaGrange Corporation would be:

The total cash collected during January by LaGrange Corporation would be: $192,000

Explanation:

Total Credit Sales in December of the current year = $63,000/45% = $140,000

The total cash collected during January = Cash sales of January + 55% x Credit sales of January + 40% x Credit sales of December + uncollected November sales

The LaGrange Corporation has Cash sales of January of $40,000 and Credit sales of January of $140,000, uncollected November sales of $19,000

The total cash collected during January = $40,000 + 55% x $140,000 + 40% x $140,000 + $19,000 = $192,000

answer; i believe the correct answer is (business necessity defense;

the assumption the narrator makes in this excerpt is that the messages he heards were going to hurt the narrator's mom; the narrator just springs in to action. the narrator doesn't specify in this excerpt why he believes that the messages present a problem that requires protection.