FSA Income Statement 300, reported, interpret, following

Carson

Could anyone help me to interpret the below problem
Baetica Company reported the following selected financial statement data for the year ended December 31, 20X7:
in millions % of Sales
For the year ended December 31, 20X7: $500 100%
Sales
Cost of goods sold (300) 60%
Selling and administration expenses ( 25) 25%
Depreciation (50) 10%
Net income $25 5%
>
As of December 31, 20X7:
Noncash operating working capital a $100 20%
Cash balance $35 N/A
a Noncash operating working capital = Receivables + Inventory – Payables
Baetica expects that sales will increase 20% in 20X8. In addition, Baetica expects to make fixed capital expenditures of $75 million in 20X8. Ignoring taxes, calculate Baetica’s expected cash balance, as of December 31, 2008, assuming all of the commonsize percentages remain constant.
A) $30 million.
B) $40 million.
C) $80 million.