Your Firm Is Trying to Determine Its Cash Disbursements for the Next

Multiple Choice

Your firm is trying to determine its cash disbursements for the next two months (June and July) . In any month, the firm makes purchases of 60% of that month's sales, which are paid the following month. In addition, the firm incurs the following costs every month and pays for them in the month the expenses are incurred: wages/salaries of $10,000, rent of $4,000, and miscellaneous cash expenses of $1,000. Depreciation amortized on a monthly basis is $2,000. June's sales are expected to be $100,000, and July's sales are expected to be $150,000. Cash disbursements for the month of July are expected to be

A) $105,000.
B) $107,000.
C) $77,000.
D) $75,000.