A Company Expects Its September Sales to Be 15% Higher

Multiple Choice

A company expects its September sales to be 15% higher than its August sales of $140,000.Purchases were $75,000 in August and are expected to be $85,000 in September.All sales are on credit and are collected as follows: 30% in the month of the sale and 70% in the following month.Merchandise purchases are paid as follows: 25% in the month of purchase and 75% in the following month.The beginning cash balance on September 1 is $71,500.The ending cash balance on September 30 would be:

A) $121,800
B) $148,700
C) $140,300
D) $143,700
E) $135,300