Freightcan Holders has provided the following extracts from their budget for the first quarter of the forthcoming year:

	Jan	Feb	March
Sales (30% cash)	$500,000	$750,000	$1,000,000

The company collects 60% of credit sales in the same month and the balance in the next month. Calculate the collections from the customers for the month of February.

$ 580,000

$720,000

$680,000

$490,000

Please explain your answer because I would have thought it was 455,000 on my own. Thanks!