Arroyo company has found from past experience that 20% of its sales are for cash. the remaining is from credit. an analysis of credit sales reveals the following:

15% of credit sales are paid in the month of sale. 65% of credit sales arepaid in the first month following the month of sale. 18% of credit sales are paid in the second month following the month of sale. 2% of credit sales are never collected.

Arroyo Company has developed the following sales forecast:

Novemeber $66,000 December $85,000 January $55,000 February $ 75,000 March $ 80,000

1. The budgeted cash receipts in March from sales made in January are: a. $28,600 b. $44,000 c. $7,920 d. $9,900

2. The budgeted cash receipts for Feburary for sales made in Feburary are: a, $28,600 b. $26,250 c. $11,250 d. $25,725

3. The budgeted cash reciepts for march from sales made in December are: a. $12,240 b. $1,700 c. $28,000 d. none