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Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs (1) $157,000

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:

April May June
Manufacturing costs (1) $157,000 $195,500 $218,900
Insurance expense (2) 1,000 1,000 1,000
Depreciation expense 2,050 2,050 2,050
Property tax expense (3) 540 540 540

(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 $1,000 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

a.$185,875

b.$39,250

c.$225,125

d.$146,625

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