Arroyo Company has found from past experience that 20 percent of its sales are for cash. The remaining 80 percent are on credit. Ana 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 March from sales made in January are:

	a.	$9,900
	b.	$28,600
	c.	$7,920
	d.	$44,000