Kelita Ltd projects sales for its first three months of operation as follows:

October November December

Credit sales 100,000 150,000 200,000

Cash sales 40,000 60,000 50,000

$140,000 $210,000 $250,000

Inventory on 1 October is $40,000. Subsequent beginning inventories should be 40% of that month's 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.

What are the anticipated cash disbursements for October?

Select one:

a.$140,000

b.$180,000

c.none of these

d.$120,000

e.$60,000