Mitchell Company had the following budgeted sales for the first half of next year:

	Cash Sales	Credit Sales
January	$90,000	$190,000
February	$95,000	$210,000
March	$35,000	$170,000
April	$40,000	$135,000
May	$50,000	$240,000
June	$120,000	$250,000

The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:

Collections on credit sales:

50% in month of sales

40% in month of following sales

10.0% in second month following sales

Assume that the accounts receivable balance on January 1 was $65,000. Of this amount, $50,000 represented uncollected December sales and $15,000 represented uncollected November sales. Given these data, the total cash collected during January would be:

a. $325,000

b. $255,000

c. $240,000

d. $100,000