1. Millard's Mops is preparing a cash flows budget for the year. The quarterly sales budget shows the following:

Sales (# of mops)

• 1st Quarter = 100,000
• 2nd Quarter = 120,000
• 3rd Quarter = 180,000
• 4th Quarter = 160,000

Mops sell for an average cost of $2 each. Based on his review of last year's experience, Millard learned that 90% of the revenues are collected in the quarter the items are sold and the remaining 10% are collected in the following quarter.

What is the total amount of expected cash collections during the third quarter?

$174,000

$179,000

$348,000

$358,000