The Danser Company Expects to Have Sales of $30,000 in January

Multiple Choice

The Danser Company expects to have sales of $30,000 in January, $33,000 in February, and $38,000 in March. If 20 percent of sales are for cash, 40 percent are credit sales paid in the month following the sale, and 40 percent are credit sales paid 2 months following the sale, what are the cash receipts from sales in March?

A) $55,000
B) $47,400
C) $38,000
D) $32,800
E) $30,000