Brarin Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

	Sales are budgeted at $210,000 for November, $230,000 for December, and $220,000 for January.
	Collections are expected to be 50% in the month of sale, 48% in the month following the sale, and 2% uncollectible.
	The cost of goods sold is 55% of sales.
	The company would like to maintain ending merchandise inventories equal to 45% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
	Other monthly expenses to be paid in cash are $21,800.
	Monthly depreciation is $19,700.
	Ignore taxes.

The cost of December merchandise purchases would be:

A. $126,500

B. $124,025

C. $54,450

D. $115,500