Star Company has budgeted its activity for October to reflect net income $120,000. Receivables are planned to

Question:

Star Company has budgeted its activity for October to reflect net income $120,000. Receivables are planned to increase by $35,000 and payables to decrease by $25,000. Depreciation is $65,000.
A) Cash will increase by $60,000.
B) Cash will increase by $120,000.
C) Cash will increase by $125,000.
D) Cash will increase by $185,000.