ABC Company began operations on 1/1/15. Budgeted sales are as follows: January $25,000, February $30,000 and March: $32,000. 10% are expected to be cash sales, with the remaining 90% on credit. Of the credit sales, 50% are expected to be collected in the same month, 40% the following month, and 10% collected two months after the sale. What are the predicted cash collections for February?

a. $13,750 b. $27,500 c. $30,500 d. $30,900