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Scanlon Corporation has estimated its activity for April as follows:
Sales: $900,000
Gross profit (based on sales): 30%
Increase in accounts receivable during month: 15,000
Increase in finished goods inventory during month: 25,000
Total selling and administrative costs: 80,000
Depreciation included in selling and administrative costs: 15,000
Scanlon has no raw material or work in process inventory at the beginning or end of April. On the basis of the above, what are estimated cash disbursements for April?
a. $510,000
b. $655,000
c. $565,000
d. $720,000
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