Assume a merchandising companys estimated sales for January, February, and March are $120,000, $140,000, and $130,000, respectively. Its cost of goods sold is always 30% of its sales. The company always maintains ending merchandise inventory equal to 30% of next months cost of goods sold. What are the required merchandise purchases for January?

Multiple Choice

$46,200

$37,800

$34,200

$42,000