Information on the actual sales and inventory purchases of the Law Company for the first quarter follow:

Sales Inventory purchases

january.........................................$120,000 $60,000

february........................................$100,000 $78,000

march...........................................$130,000 $90,000

Collections from Law Company's customers are normally 60% in the month of sale, 30% in the month following sale, and 8% in the second month following sale. The balance is uncollectible. Law Company takes full advantage of the 3% discount allowed on purchases paid for by the end of the following month.

The company expects sales in April of $150,000 and inventory purchases of $100,000. Selling and administrative expenses for the month of April are expected to be $38,000, of which $15,000 is salaries and $8,000 is depreciation. The remaining selling and administrative expenses are variable with respect to the amount of sales in dollars. Those selling and administrative expenses requiring a cash outlay are paid for during the month incurred. Law Company's cash balance on March 1 was $43,000, and on April 1 was $35,000.

Q. The expected cash collections from customers durning April would be:

A. $150,000

B. $137,000

C. $139,000

D. $117,600

Q. The expected cash disbursements during April for selling & administrative expenses would be:

A. $38,000

B. $30,000

C. $23,000

D. $25,000

Q. The expected cash balance on April 30 would be:

A. $45,700

B. $53,700

C. $10,700

D. $19,700