8. (Percentage of sales. spontaneous and discretionary accounts) A company had sales of $10,000,000 last year and forecasts sales of $12,000,000 in the coming year. It ended last year with $250,000 in its cash balance and with another $175,000 of marketable securities. Cash is considered a spontaneous asset. Forecast the end-of-coming-year balances of cash and marketable securities under each of the following alternatives:

A.100% of the marketable securities balance is considered part of the company's operating cash and therefore spontaneous.

b. 60% of the marketable securities balance is considered part of the company's operating cash and therefore spontaneous. The remainder is considered discretionary.

c. 25% of the marketable securities balance is considered part of the company's operating cash and therefore spontaneous. The remainder is considered discretionary.

d. None of the marketable securities balance is considered part of the company's operating cash, but rather it is all considered discretionary.