Fielding Wilderness Outfitters had projected its sales for the first six months of 2008 to be as follows:
Jan. ......... $50,000
Feb. ......... $60,000
Mar. ......... $100,000
April ........ $180,000
May ......... $240,000
June ........ $240,000
Cost of goods sold is 60% of sales. Purchases are made and paid for two months prior to the sale. 40% of sales are collected in the month of the sale, 40% are collected in the month following the sale, and the remaining 20% in the second month following the sale. Total other cash expenses are$40,000/month. The company's cash balance as of March 1st, 2008 is projected to be $40,000, and the company wants to maintain a minimum cash balance of $15,000. Excess cash will be used to retire short-term borrowing (if any exists). Fielding has no short-term borrowing as of March 1st, 2008. Assume that the interest rate on short-term borrowing is 1% per month. What was Fielding's projected loss for March?
a) $84,000
b) $110,000
c) $184,000
d) None of the above