The Following Information Pertains to the January Operating Budget for Casey

Multiple Choice

The following information pertains to the January operating budget for Casey Corporation.
-Budgeted sales for January $201,000 and February $101,000.
-Collections for sales are 40% in the month of sale and 60% the next month.
-Gross margin is 25% of sales.
-Administrative costs are $13,000 each month.
-Beginning accounts receivable is $25,000.
-Beginning inventory is $17,000.
-Beginning accounts payable is $73,000. (All from inventory purchases.)
-Purchases are paid in full the following month.
-Desired ending inventory is 25% of next month's cost of goods sold (COGS) .
For January, budgeted cash collections are ________.

A) $201,000
B) $105,400
C) $80,400
D) $25,000