ARO Inc. prepares rolling budgets for the upcoming two months. For December, January, and February, the firm expects to sell 12,000 units, 4,000 units and 7,000 units respectively. The selling price is $2per unit. Actual sales during November were $8,000.Sales on account amount to 70% of all sales. Collection of sales on account amount to 40% in the month of the sale and 50% in the month following the sale. What is ARO's budgeted cash collections for January

Multiple Choice

• $16,720
• $13,040
• $14,400
• $12,640