Brownsville Novelty Store prepared the following budget information for the month of May: Sales are budgeted at $371,000. All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month. Inventory was $95,000 on April 30; an inventory increase of $20,000 is planned for May 31. All inventory is marked to sell at cost plus 40 percent. Estimated cash disbursements for selling and administrative expenses for the month are $59,000. Depreciation for May is projected at $7100. Brownsville's budgeted cost of inventory purchases for May is:

		$203,500.
		$265,000.
		$106,000.
		$148,400.
		$285,000.