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Worton Distributing expects its September sales to be 20% higher than its August sales of $156,000. Purchases were $106,000 in August and are expected to

Worton Distributing expects its September sales to be 20% higher than its August sales of $156,000. Purchases were $106,000 in August and are expected to be $126,000 in September. All sales are on credit and are expected to be collected as follows: 40% in the month of the sale and 60% in the following month. Purchases are paid 20% in the month of purchase and 80% in the following month. The cash balance on September 1 is $16,000. The ending cash balance on September 30 is estimated to be:

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$72,065.

$75,120.

$74,880.

$74,480.

$90,480.

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