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

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