Assume a merchandising companys estimated sales for January, February, and March are $110,000, $130,000, and $120,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 25% of next months cost of goods sold. It pays for 25% of its merchandise purchases in the month of the purchase and the remaining 75% in the subsequent month. What is the accounts payable balance at the end of February?

Multiple Choice

$57,375

$19,125

$51,750

$52,850