Wichita Industries' Sales Are 10% for Cash and 90% on Credit.Credit

Multiple Choice

Wichita Industries' sales are 10% for cash and 90% on credit.Credit sales are collected as follows: 30% in the month of sale,50% in the next month,and 20% in the second following month.Wichita Industries' had $12,000 from November sales and $42,000 from December sales.Assume that total sales for January and February are budgeted to be $50,000 and $100,000,respectively.What are the expected cash receipts for February from current and past sales?

A) $80,500.
B) $71,500.
C) $34,500.
D) $61,500.
E) $59,500.