The Following Data Have Been Taken from the Budget Reports

Multiple Choice

The following data have been taken from the budget reports of Brandon Company, a merchandising company. $\begin{array}{lrr}&\text { Purchases }&\text { Sales }\\ \text { January } &£ 160,000 &£ 100,000\\ \text { February} &160,000&200,000\\ \text { March } &160,000&240,000\\ \text { April } &140,000 & 300,000\\ \text { May } &140,000&260,000\\ \text { June } &120,000&240,000\\\end{array}$

Forty percent of purchases are paid for in cash at the time of purchase, and 30% are paid for in each of the next two months. Purchases for the previous November and December were £150,000 per month. Employee wages are 10% of sales for the month in which the sales occur. Operating expenses are 20% of the following month's sales. (July sales are budgeted to be £220,000.) Interest payments of £20,000 are paid quarterly in January and April. Brandon's cash disbursements for the month of April would be

A) £140,000.
B) £254,000.
C) £200,000.
D) £248,000.