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Question(s) / Instruction(s):

                                           Purchases           Sales

   January                             $160,000              $100,000

   February                            $160,000              $200,000

   March                                $160,000              $240,000

   April                                  $140,000              $300,000

   May                                  $140,000              $260,000

   June                                 $120,000              $240,000

  
The following data have been taken from the budget reports of Brandon company, a merchandising company.

Forty percent of purchases are paid for in cash at the time of purchase, and 30% are paid for in each of the next two months. Purchases for the previous November and December were $150,000 per month. Employee wages are 10% of sales for the month in which the sales occur. Selling and administrative expenses are 20% of the following months sales. (July sales are budgeted to be $220,000.) Interest payments of $20,000 are paid quarterly in January and April. Brandons cash disbursements for the month of April would be:

a)            $140,000

b)            $200,000

c)            $254,000

d)            $248,000

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