I took a test and missed this question, i'm not understanding what I did wrong... can someone walk me through this problem? Thanks! :

Payne Company provided the following information relevant to its inventory sales and purchases for December Year 1 and the first quarter of Year 2:

	Dec. Year 1			Jan. Year 2			Feb. Year 2			Mar. Year 2
	(Actual)			(Budgeted)			(Budgeted)			(Budgeted)
Cost of goods sold	$	80,000		$	140,000		$	180,000		$	120,000

Desired ending inventory levels are 25% of the following month's projected cost of goods sold. The company purchases all inventory on account. January Year 2 budgeted purchases are $150,000. The normal schedule for inventory payments is 60% payment in month of purchase and 40% payment in month following purchase.

Budgeted cash payments for inventory in February Year 2 would be:

Multiple Choice

• $132,600.

  Incorrect

• $99,000.

• $159,000.

• $152,600.