A Company's Past Experience Indicates That 60% of Its Credit $\begin{array}{lr}\text { January } & \$ 360,000 \\\text { February } & 216,000 \\\text { March } & 540,000\end{array}$

Multiple Choice

A company's past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5% in the second month after the sale; the remainder is never collected.Budgeted credit sales were: $\begin{array}{lr}\text { January } & \$ 360,000 \\\text { February } & 216,000 \\\text { March } & 540,000\end{array}$ The cash inflow in the month of March is expected to be

A) $406,800.
B) $307,800.
C) $324,000.
D) $388,800.