The LaGrange Corporation had the following budgeted sales for the first half of the current year:

	Cash Sales	Credit Sales
January	$70,000	$170,000
February	$75,000	$190,000
March	$45,000	$150,000
April	$40,000	$125,000
May	$50,000	$220,000
June	$100,000	$190,000

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 sales:

45% in month of sale

40% in month following sale

15% in second month following sale

The accounts receivable balance on January 1 of the current year was $69,000, of which $44,000 represents uncollected December sales and $25,000 represents uncollected November sales.

The total cash collected during January by LaGrange Corporation would be:

Multiple Choice

• $301,000

• $251,000

• $80,000

• $203,500