Use the Information Below to Answer the Following Question(s)

Use the information below to answer the following question(s) .
Grinnell Manufacturing Company has the following information for 2015:
Budget Expenses per Month
Note: All cash expenses are paid as incurred;Collections from sales are 50% in the month of sale and 50% in the month following the sale;December 2014 sales were $110,000.
-What is the budgeted net operating income for the first quarter of 2015?

A) $132,640
B) $135,280
C) $172,160
D) $123,640
E) $140,560