Last year South Bend Inc. had $500 million of sales, and the sales will be forecasted $600 million this year. Last years spontaneous assets were $200 million. What is the forecasted spontaneous assets this year. Assume that the firm is operated at full capacity and the firm is using percent of sales method of forecasting.

a. $210 million

b. $220 million

c. $230 million

d. $240 million

e. $250 million