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Information on the actual sales and inventory purchases of the Law Company for the first quarter follows: Sales Inventory Purchases January $120,000 $60,000 February $100,000

Information on the actual sales and inventory purchases of the Law Company for the first quarter follows: 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. Operating 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 operating expenses are variable with respect to the amount of sales in dollars. Those operating 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. The expected cash balance on April 30 would be:

a. $54,700. b. $19,700. c. $28,700. d. $62,700.

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