Wichita Industries' sales are 10% cash and 90% on credit. Credit sales are collected as follows: 40% in the month of sale, 50% in the next month, and 10% in the following month. On December 31, the accounts receivable balance includes $26,000 from November sales and $45,000 from December sales. Assume that total sales for January are budgeted to be $64,000. What are the expected cash receipts for January from the current and past sales?

Multiple Choice

• $69,540.

• $77,940.

• $92,940.

• $86,540.

• $29,440.