Rainbow, Inc. began operations on January 1 of the current year with a $11,900 cash balance. Fifty percent of sales are collected in the month of sale; 50% are collected in the month following sale. Similarly, 10% of purchases are paid in the month of purchase, and 90% are paid in the month following purchase. The following data apply to January and February Sales Purchases January February $34,000 $54,000 29,500 39.000 Operating expenses 6,900 8,900 If operating expenses are paid in the month incurred and include monthly depreciation charges of $2,400, determine the change in Rainbow's cash balance during February Multiple Choice O $4,650 Increase $7,050 Increase $14,200 increase $16,600 Increase. None of the answers is correct