20 Wolverine, Inc. began operations on January 1 of the current year with a $12,000 cash balance. Forty percent of sales are collected in the month of sale; 60% are collected in the month following sale. Similarly, 20% of purchases are paid in the month of purchase, and 80% are paid in the month following purchase. The following data apply to January and February: ut of 10 question Sales Purchases Operating expenses January $35,000 30,000 7,000 February $55.000 40.000 9,000 If operating expenses are paid in the month incurred and include monthly depreciation charges of $2,500, determine the change in Wolverine's cash balance during February Select one: O a $2,000 increase. O b. $4,500 increase. Oc$5,000 increase. O d. $7,500 increase. O e. None of the other answers are correct