Arroyo Company has found from past experience that 20 percent of its sales are for cash. The remaining 80 percent are on credit. An analysis of credit sales reveals the following:

15 percent of credit sales are paid in the month of sale.

65 percent of credit sales are paid in the first month following the month of sale.

18 percent of credit sales are paid in the second month following the month of sale.

2 percent of credit sales are never collected.

Arroyo Company has developed the following sales forecast:

November $66,000

December 85,000

January 55,000

February 75,000

March 80,000

Q: The budgeted cash receipts in February from sales made in December are:

A. 10,800

b 12.240,

c. 13,500

d. 15,300