Woodpecker Co. has $294,000 in accounts receivable on January 1. Budgeted sales for January are $843,000. 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.$581,040

b.$968,400

c.$1,262,400

d.$774,720