The LaGrange Corporation had the following budgeted sales for the first half of the current year: The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:Collections on sales:50% in month of sale40% in month following sale10% in second month following saleThe accounts receivable balance on January 1 of the current year was $75,000, of which $47,000 represents uncollected December sales and $28,000 represents uncollected November sales.The total cash collected during January by LaGrange Corporation would be:

A) $321,000
B) $264,000
C) $94,000
D) $235,600

To determine the total cash collected during January, we need to calculate the collections on sales made in January and the collections on sales made in the previous months that were not collected as of January 1.

Collections on January sales:
50% x $190,000 = $95,000 (collected in January)
40% x $190,000 = $76,000 (collected in February)
10% x $190,000 = $19,000 (collected in March)

Collections on previous months' sales:
$47,000 (for December sales)
50% x $130,000 (for November sales) = $65,000
40% x $130,000 = $52,000
10% x $130,000 = $13,000

Total cash collected during January:
$95,000 (collections on January sales) + $47,000 (collections on December sales) + $65,000 (collections on November sales) = $207,000

However, we must subtract the accounts receivable balance on January 1 that is attributable to January and previous months' sales:
$190,000 (January sales) - $95,000 (collected in January) = $95,000 (accounts receivable for January sales)
$95,000 (January sales receivable) + $47,000 (December sales receivable) + $65,000 (November sales receivable) = $207,000 (total accounts receivable on January 1)
$207,000 (total accounts receivable on January 1) - $75,000 (total accounts receivable balance on January 1) = $132,000 (increase in accounts receivable from December to January)

Therefore, the total cash collected during January by LaGrange Corporation is:
$207,000 - $132,000 = $75,000 (cash collections during January from previous months' sales)
$207,000 + $75,000 = $282,000 (total cash collections during January)
However, we need to subtract the increase in accounts receivable from December to January that is attributable to January sales:
$282,000 - $95,000 = $187,000 (cash collections during January from January sales)
Therefore, the answer is D: $235,600.