Mikhail Corporation Has the Following Sales Forecasts for the First

Multiple Choice

Mikhail Corporation has the following sales forecasts for the first three months of 2016: Sixty-five percent of sales are collected in the month of the sale and the remainder are collected in the following
Month.
Accounts receivable balance (January 1, 2016) $16,000 Cash balance (January 1, 2016) 12,000
Minimum cash balance is $20,000. Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges) .
How much cash would be collected in March from sales?

A) $32,000
B) $58,400
C) $48,000
D) $34,400