Kelita, Inc., projects sales for its first three months of operation as follows: Inventory on October 1 is $40,000. Subsequent beginning inventories should be 40% of that months cost of goods sold. Goods are priced at 140% of their cost. 50% of purchases are paid for in the month of purchase; the balance is paid in the following month. It is expected that 50% of credit sales will be collected in the month following sale, 30% in the second month following the sale, and the balance the third month. A 5% discount is given if payment is received in the month following sale. (Appendix 10A) What are the anticipated cash disbursements for October?

a. $120,000

b. $180,000

c. $140,000

d. $60,000

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October November December Credit sales Cash sales Total Sales S100,000 S150,000 S200,000 50,000 $140.000 S210.000 S250.000 10,00 Ko,oo)