Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business September, October, and November are $242,000, $317,000, and $428,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.

The cash collections expected in October from accounts receivable are estimated to be

a.$211,400

b.$177,520

c.$253,680

d.$143,640

14. MC.22.131.ALGO

Finch Company began its operations on March 31 of the current year. Finch has the following projected costs:

	April	May	June
Manufacturing costs*	$156,500	$197,500	$214,800
Insurance expense**	1,010	1,010	1,010
Depreciation expense	1,960	1,960	1,960
Property tax expense***	510	510	510

* Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $1,010 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October). ***Property tax is paid once a year in November.

The cash payments expected for Finch Company in the month of April are

a.$156,500

b.$117,375

c.$120,405

d.$138,453