Purchases for May Were $100 000, While Expected Purchases for June

Multiple Choice

Purchases for May were $100 000, while expected purchases for June and July are $110 000 and $125 000, respectively. All purchases are paid 25% in the month of purchase and 75% the following month. At what amount are June payments for purchases budgeted?

A) $121 250
B) $102 500
C) $107 500
D) $110 000