7. The following data have been taken from the budget reports of Brandon company,a merchandising company .
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Forty percentof 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 Novemberand 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 month’ssales. (July sales are budgeted to be $220,000.) Interest payments of $20,000 are paid quarterlyin January and April. Brandon’s cash disbursements for the month of April would be:
A. $140,000
B. $254,000
C.$200,000
D. $248,000