The owner of Greenwell Tire Sales needs to request a line of credit from his bank. He has calculated the following sales forecasts for the following months: November $25,000 December $35.000 January $20,000 February $23,000 Collection of sales is expected to be as follows: 15% within the month of sale: 60% the month following the sale; and 25% the second month following the sale. Total labor and raw materials costs are expected to be incurred as follows: November $17.500 December S10,000 January $11.500 February S12.500 TL These labor and raw materials costs (above) are paid for the month after they are incurred. Salaries cost the firm $3.300 per month; lease payments are $700 per month; depreciation charges are expected to be $400 per month: an income tax payment of $800 will be made in January; and a payment of S1000 for advertising will be made in February. Cash on hand on January 1st will amount to $3,000, and a target cash balance of S5,000 will be maintained throughout the cash budget period. Prepare a monthly cash budget for January and February and answer the following: Calculate total collections of sales for January O $28.150 none of the above $23.750 $30.250 $20,000