#5

Cave Hardware's forecasted sales for April, May, June, and July are $200,000, $230,000, $190,000, and$240,000, respectively. Sales are 65% cash and 35% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is 75% of sales and ending inventory is maintained at $60,000 plus 10% of the following month's cost of goods sold. All inventory purchases are paid 22% in the month of purchase and 78% in the following month.

What are the budgeted cash payments in June to account for the inventory purchases at Cave Hardware?

A.

$167,415

B.

$315,750

C.

$164,385

D.

$495,000