Woxy company is considering its forthcoming projections for cash budget purposes. Woxy's forecasts the following sales figures for the next four months.

April

May

June

July

$250,000

$150,000

$225,000

$150,000

Cash sales average 10% of total sales and credit sales are collected 50% in the month of sale and 50% in the month following sale. What are the estimated cash collections in May?

a.

$215,000

b.

$207,500

c.

$195,000

d.

$150,000

e.

$ 82,500