Elite Store Ltd, a retail shop, projects sales for its first three months of operation as follows.

	July	August	September
Credit sales	$220,000	$245,000	$346,000
Cash sales	$140,000	$ 80,000	$114,000
Total sales	$360,000	$325,000	$460,000

Inventory on 1 July is $60,000. Subsequent beginning inventories should be 30% of that months cost of goods sold. Goods are priced at 125% of their cost.

60% of purchases are paid for in the month of purchase; the balance is paid in the following month.

It is expected that 50% of credit sales will be collected in the month following sale, 35% in the second month following the sale and the balance the third month. A 5% discount is given if payment is received in the month following sale.

What are the anticipated cash receipts for July?

Select one:

a. $250,000

b. $220,000

c. $360,000

d. $140,000

e. None of these