The Following Budget Information Is Available for Crescent Company for January

Multiple Choice

The following budget information is available for Crescent Company for January Year 2: $$\begin{array} { l c } \text { Sales } & \$ 800,000 \\\text { Cost of goods sold } & 540,000 \\\text { Utilities expense } & 2,500 \\\text { Administrative salaries } & 100,000 \\\text { Sales commisissions } & 5 \% \text { of sales } \\\text { Advertising } & 20,000 \\\text { Depreciation on store equipment } & 50,000 \\\text { Rent on administration building } & 60,000 \\\text { Miscellaneous administrative expenses } & 10,000 \\\text { Percentage of sales on credit } & 80 \%\end{array}$$ All operating expenses are paid in cash in the month incurred.The amount of expected cash outflow for selling and administrative expenses would be:

A) $262,500.
B) $247,500.
C) $232,500.
D) $312,500.