Worton Distributing Expects Its September Sales to Be 25% Higher

Worton Distributing expects its September sales to be 25% higher than its August sales of $150,000.Purchases were $100,000 in August and are expected to be $120,000 in September.All sales are on credit and are expected to be collected as follows: 30% in the month of the sale and 70% in the following month.Purchases are paid 25% in the month of purchase and 75% in the following month.The beginning cash balance on September 1 is $10,000.The ending cash balance on September 30 would be:

A) $56,250.
B) $56,500.
C) $65,250.
D) $66,250.
E) $76,250.

Correct Answer:

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