Please help. thanks!

Morgan Company's budgeted income statement reflects the following amounts:

	Sales			Purchases			Expenses
January	$	123,000		$	81,000		$	24,300
February		113,000			69,000			24,500
March		128,000			84,250			27,300
April		133,000			87,500			28,900

Sales are collected 50% in the month of sale, 30% in the month following sale, and 19% in the second month following sale. One percent of sales is uncollectible and expensed at the end of the year.

Morgan pays for all purchases in the month following purchase and takes advantage of a 3% discount. The following balances are as of January 1:

Cash	$	91,000
Accounts receivable*		61,000
Accounts payable		75,000

^*Of this balance, $36,600 will be collected in January and the remaining amount will be collected in February.

The monthly expense figures include $5,300 of depreciation. The expenses are paid in the month incurred.

Morgans budgeted cash receipts in February are:

Multiple Choice

• $93,400.

• $97,400.

• $116,890.

• $117,440.

• $117,800