The Palos Company Expects Sales for June, July, and August

Multiple Choice

The Palos Company expects sales for June, July, and August of $48,000, $54,000, and $44,000, respectively. Experience suggests that 40% of sales are for cash and 60% are on credit. The company collects 50% of its credit sales in the month following sale, 45% in the second month following sale, and 5% are not collected. What are the company's expected cash receipts for August from its current and past sales?

A) $29,160.
B) $46,760.
C) $61,160.
D) $66,200.
E) $78,800.