It is January 1 of Year 2. Purchases for Catherine Company for January, February, and March are forecasted to be as follows:

• January: $250,000
• February: $300,000
• March: $150,000

Of all purchases, 20% are for cash. Of the credit purchases, 20% are paid during the month of purchase, 35% of the month following the purchase, and 45% in the second month following the purchase. TOTAL purchases for November and December of Year 1 were $200,000 and $500,000, respectively.

What is the forecasted amount of total CASH PAYMENTS FOR PURCHASES in February?

Note: This is the sum of immediate payments from cash purchases, same-month cash payments of credit purchases, and cash payments for credit purchases made in prior months.

Group of answer choices

$388,000

$368,000

$358,000

$378,000