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Problem 1: Granite Furniture Store has the following sales forecast for the first 4 months of the year. In month one, Granite generated $45,000 in cash sales and $200,000 in credit sales. In month two Granite generated $55,000 in cash sales and $270,000 in credit sales. In month three, Granite generated $40,000 in cash sales and $220,000 in credit sales. In month four, Granite generated $65,000 in cash sales and $350,000 in credit sales. On average, 30% of credit sales are paid for in the current month, 40% in the next month, and the remainder in the month after that. What are the expected cash collections in month number 4?
Option 1: $310,000
Option 2: $339,000
Option 3: $170,000
Option 4: $415,000
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