Walter Enterprises expects its September sales to be 30% higher than its August sales of $175,000. Purchases were $125,000 in August and are expected to be $145,000 in September. All sales are on credit and are collected as follows: 40% in the month of the sale and 60% in the following month. Merchandise purchases are paid as follows: 30% in the month of purchase and 70% in the following month. The beginning cash balance on September 1 is $7,400. The ending cash balance on September 30 would be:

Multiple Choice

• $72,400.

• $159,900.

• $65,000.

• $89,900.

• $24,900.