Below is the sales budget for Choc Enterprises: December through April:

Dec Jan Feb Mar Apr

Sales $90,000 $60,000 $50,000 $80,000 $60,000

Historically, 20% of sales are collected in the month of sale, 70% is collected the month after the sale, 6% is collected two months after the sale, and 4% are written off as uncollectible.

Compute the budgeted cash collections for February.

1. $50,000
2. $54,400
3. $57,400
4. $69,600