Smithfield Company collects 20% of a month's sales in the month of sale, 70% in the month

following sale, and 6% in the second month following sale. The remainder is uncollectible.

Budgeted sales for the next four months are:

January February March April

Budgeted sales. $200,000 $300,000 $350,000 $290,000 Cash collections in April are budgeted to be: A. $321,000 B. $245,000 C. $323,000

D. $292,000

E. $313,000