3. Kidder Company began its operations on March 31st of the current year. Budgeted operating expenses for the first three months of operations follow:

April $156,800

May $195,200

June $217,600

Depreciation of $6,000, property taxes of $17,000 and insurance of $5,800 are included in each month's operating expenses above. Property taxes will be paid in August and insurance was paid in March. All other operating expenses are paid 75% in the month incurred and the remainder paid in the following month. The cash payments for operating expenses in May are budgeted to be ________.

a. $156,800 b. $200,800 c. $172,000 d. $185,600

4. PJ Lynn Company plans to sell 100,000 units in March and 140,000 units in April. PJ Lynn