Richards Corporation has the following budgeted sales for the first half of next year:

	Cash Sales	Credit Sales
January	$20,000	$120,000
February	$25,000	$140,000
March	$42,000	$100,000
April	$47,000	$142,000
May	$57,000	$170,000
June	$50,000	$320,000

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:

55% in month of sales

35% in month of following sales

10.0% in second month following sales

The accounts receivable balance on January 1 is $66,000. Of this amount, $54,000 represents uncollected December sales and $12,000 represents uncollected November sales.

The total cash collected during January would be:

$120,000

$185,000

$140,000

$178,000