Mikhail Corporation has the following sales forecasts for the first three months of the current year:

Month Sales January $36,000

February 24,000

March 40,000

Sixty-five percent of sales are collected in the month of the sale and the remainder are collected in the following month. Mikhail will borrow from its bank to maintain its minimum cash balance.

Accounts receivable balance (January 1) $16,000

Cash balance (January 1) 12,000

Minimum cash balance needed 20,000

What is the cash balance at the end of January, assuming that cash is received only from customers and that $48,000 is paid out during January?

Group of answer choices

$21,000

$23,400

$19,400

$20,000