The Banderas Company, a merchandising firm, has budgeted its activity for December according to the following information:

1) Sales at $550,000, all for cash.

2) Merchandise inventory on November 30 was $300,000.

3) Budgeted depreciation for December is $35,000.

4) The cash balance at December 1 was $25,000.

5) Selling and administrative expenses are budgeted at $60,000 for December and are paid in cash.

6) The planned merchandise inventory on December 31 is $270,000.

7) The invoice cost for merchandise purchases represents 75% of the sales price. All purchases are paid for in cash.

The budgeted cash receipts for December are:

A.$137,500.

B.$412,500.

C.$550,000.

D.$585,000.