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.
$$\begin{array} { l l } \text { Accaunts recervable balance (January 1) } & \$16,000 \\\text { Cash balance (January 1) } & 12,000 \\\text { Minimun cash balance needed } &20,000\end{array}$$
- What is the cash balance at the end of January,assuming that cash is received only from customers and that $48,000 is paid out during January?

A) $19,400
B) $20,600
C) $21,000
D) $23,400