Colorado Company has 300,000 in accounts payable on February 1. Budgeted purchases for February are 750,000. Colorado Company expects to pay 25% in the month of the purchase with the remainder the following month. February cash payments for purchases are expected to be

Select one:

a. 187,500

b. 487,500

c. 750,000

d. 1,050,000

e. 300,000