14.

A company estimates its sales at 180,000 units in the first quarter and that sales will increase by 18,000 units each quarter over the year. Each unit sells for $50. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remaining 30% is received in the quarter following the sale.

Cash collections for the third quarter are budgeted at

a. $6,102,000.

b. $8,856,000.

c. $10,638,000.

d. $12,312,000.