Woodpecker Co. has $290,000 in accounts receivable on January 1. Budgeted sales for January are $936,000. Woodpecker Co. expects to sell 20% of its merchandise for cash. Of the remaining 80% of sales on account, 75% are expected to be collected in the month of sale and the remainder the following month. The January cash collections from sales are

a. $1,038,800

b. $831,040

c. $623,280

d. $1,328,800