Walter Enterprises expects its September sales to be 25% higher than its August sales of $200,000. Purchases were $150,000 in August and are expected to be $170,000 in September. All sales are on credit and are collected as follows: 35% in the month of the sale and 65% in the following month. Merchandise purchases are paid as follows: 25% in the month of purchase and 75% in the following month. The beginning cash balance on September 1 is $7,900. The ending cash balance on September 30 would be:

• 25,400.

• $87,900.

• $62,500.

• $70,400.

• $182,900.