A company has forecast sales in the first 3 months of the year as follows ( figures in millions)

January = 70

Feb = 85

March = 110

60% of sales are usually paid for in the month that they take place and 40 percent in the following month. Recievables at the end of December were $24m. What are the forecasts collections on accounts receivable in March

1. 85 million
2. 88 million
3. 92 million
4. 100 million.