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 2012:
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 2011 sales were $110,000.
-What is the budgeted net operating income for the first quarter of 2012?

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