Woodpecker Co. has $304,000 in accounts receivable on January 1. Budgeted sales for January are $978,000. 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. $869,120 b. $1,390,400 c. $651,840 d. $1,086,400