Cutie Molly, Inc. forecasts the following sales levels: January, $420,000; February, $435,000; March, $450,000; and April, $470,000. Historically, 40% of its sales are for cash. Of the remaining (60%) sales, 70% are collected in one month, 25% are collected in the second month, while the rest remain uncollected. November sales were $380,000 and December sales were $500,000.

Purchases are made at 60% of the next months sales forecast and are paid for in the month of purchase. Other cash outlays are rent, $10,000 monthly; wages and salaries, $50,000 monthly; a tax payment of $30,000 in March; an interest payment of $15,000 in March; and a planned purchase of $20,000 of new fixed assets in January.

23. Refer to Cutie Molly, Inc.. What is the forecasted amount to be collected from cash sales in March?

a.	$450,000
b.	$360,000
c.	$180,000
d.	$261,000