The Gadget Company Manufactures a Wrist Watch for Spy Agencies

The Gadget Company manufactures a wrist watch for spy agencies.The watch has a built-in cell phone,Geiger counter,compass,magnet and garroting wire.Sales are expected to commence in February and remain level at 10,000 units per month.The watch sells for $2 per unit.The raw materials for the product cost $1 per unit.Raw materials are purchased one month before the expected sales,and suppliers are paid one month after the purchase.Gadget's overhead expenses are $3,750 per month and depreciation is $250 per month.What are total cash outflows (disbursements) in May?
Sales and Disbursements Forecast
The Gadget Company

A) $10,000
B) $12,950
C) $13,750
D) $13,850
E) $20,000