3

Use the information below for Finch Company to answer the question that follow. Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:

	April	May	June
Manufacturing costs (1)	$157,800	$192,400	$205,800
Insurance expense (2)	940	940	940
Depreciation expense	2,050	2,050	2,050
Property tax expense (3)	520	520	520

(1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred and one-fourth is paid for in the following month. (2) Insurance expense is $940 a month; however, the insurance is paid four times yearly, in the first month of the quarter (i.e., January, April, July, and October). (3) Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are

a.$118,350

b.$139,485

c.$121,170

d.$157,800