Oakton Furniture Provided the Following Information Relevant to Its Sales

question 96

Multiple Choice

Oakton Furniture provided the following information relevant to its sales for December Year 1 and the first quarter of Year 2: $$\begin{array} { l c c c c } & \begin{array} { c } \text { Dec. Year 1 } \\\text { (Actual) }\end{array} & \begin{array} { c } \text { Jan Year 2 } \\\text { (Budgeted) }\end{array} & \begin{array} { c } \text { Feb. Year 2 } \\\text { (Budgeted) }\end{array} & \begin{array} { c } \text { Mar. Year 2 } \\\text { (Budgeted) }\end{array} \\\text { Credit sales } & \$ 120,000 & \$ 280,000 & \$ 310,000 & \$ 220,000 \\\text { Cash sales } & \$ 20,000 & \$ 50,000 & \$ 60,000 & \$ 24,000\end{array}$$ Based on the company's collection history,42% of credit sales are collected in month of sale and the remainder is collected in the following month.Total budgeted cash receipts in February are expected to be:

• A) $60,000.
• B) $162,400.
• C) $352,600.
• D) $228,000.