A company's past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5% in the second month after the sale; the remainder is never collected. Budgeted credit sales were:
January $180,000
February 108,000
March 270,000
The cash inflow in the month of March is expected to be
a. $203,400.
b. $153,900.
c. $162,000.
d. $194,400.