Michael Corporation Has the Following Sales Forecasts for the First

Michael Corporation has the following sales forecasts for the first three months: $$\begin{array} { l l } \text { Month } & \text { sales } \\\hline \text { January } & \$ 36,000 \\\text { February } & 24,000 \\\text { March } & 40,000\end{array}$$ Sixty-five percent of sales are collected in the month of the sale and the remainder are collected in the following month.
$$\begin{array} { l l } \text { Accaunts recervable balance (January 1) } & \$16,000 \\\text { Cash balance (January 1) } & 12,000 \\\text { Minimun cash balance needed } &20,000\end{array}$$
- Sixty-five percent of sales are collected in the month of the sale and the remainder are collected in the following month.
$$\begin{array} { l l } \text { Accounts recevable balance (January } 1 ) &\$16,000 \\\text { Cash balance (January } 1 ) & 12,000\end{array}$$ 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) $34,400
C) $48,000
D) $58,400