Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: Manufacturing costs (1) Insurance expense (2) Depreciation expense Property tax expense (3) April May June $159,900 $198,000 $211,700 1,020 1,020 1,020 1,860 1,860 1,860 430 430 430 (1) Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. (2) Insurance expense is $1,020 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 May are $39,975 b. $148,500 c. $228,450 4 $188,475