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

What would be the expected cash collections from customers during April? A. $117,600. B. $137,000. C. $139,000. D. $150,000.

What would be the expected cash disbursements during April for inventory purchases? A. $87,300. B. $90,000. C. $97,000. D. $100,000.

What would be the expected cash disbursements during April for operating expenses? A. $15,000. B. $23,000. C. $30,000. D. $38,000.

What would be the expected cash balance on April 30? A. $19,700. B. $28,700. C. $54,700. D. $62,700.