Use the following information to solve the Questions 1, 2, and 3 below: The treasurer of Simmons Corporation, a newly formed software company, is trying to ascertain Simmons's cash flows for the next three months. Expected sales are: ---Expected Sales--- January: $200 February: $220 March: $300 50% of sales are made for cash. Simmons expects to receive 25% in the month following the sale and 20% in the second month following the sale. The remaining 5% are expected to be un-collectible. Gross margin is 20%, and purchases are made one month prior to sale. Purchases are paid one month after received. 1. The cash outflows in March from sales will be: A) $240 B) $220 C) $200 D) $176 2.) recorded bad debt expense for march should be: A) $12.50 B) $11.00 C) $10.00 D) None of the above