Assume a company is preparing a budget for its first three months of operations. During the first, second and third months it expects credit sales of $35,000, $53,000 and $60,000, respectively. The company expects to collect 35% of its credit sales in the month of the sale and the remaining 65% in the following month. What amount of cash collections from credit sales would the company include in its cash budget for the second month?

1. $57,550

2.$41,300

3.$55,450

4.$67,700