The company starts the month of October with following accounts balances:

Cash 26,000

Accounts Receivable 80,000

Prepaid expenses 12,000

Merchandise Inventory 30,000

Accounts Payable 50,000

Accrued expenses 8,000

The company expected to have prepaid expenses of 20,000 and accrued expenses 12,000 by October 31.

The budgeted sales, all on credit and purchases for the month are 400,000 and 280,000, respectively. Operating expenses to be recognized during October are 115,000. Sales are uniformly collected, 60% during the month of sales and the remainder the following month. Accounts payable on purchase of merchandise is paid 50% at month of purchase and the other half in the first month.

The amount of cash from sales is

a. 240000

b. 272000

c. 320000

d. 288000