The following budget information is available for the Circle C Company for January 2012:

SALES	$400,000
COST OF GOODS SOLD	$270,000
FREIGHT OUT	$1,250
ADMINISTRATIVE SALARIES	$50,000
SALES COMMISSIONS	5% of sales
ADVERTISING	$10,000
DEPRECIATION ON STORE EQUIPMENT	$25,000
RENT ON ADMINISTRATION BUILDING	$30,000
MISICILANIOUS ADMINISTRATIVE EXPENSES	$5,000
PERCENTAGE OF SALES ON CREDIT	80 %

All operating expenses are paid in cash in the month incurred. The amount of expected cash outflow for selling and administrative expenses would be: ( SHOW ALL WORK)

A. $116,200

B. $123,750

C. $131,250

D. $156,250