Assume a merchandising companys estimated sales for January, February, and March are $102,000, $122,000, and $112,000, respectively. Its cost of goods sold is always 35% of its sales. The company always maintains ending merchandise inventory equal to 20% of next months cost of goods sold. What are the required merchandise purchases for January?

Multiple Choice

$34,300

$42,460

$37,100

$42,700