It is November $1$ of Year $1.$ Sales for a computer company for November,

December, and January $($of Year Z$)$ are forecasted to be as follows:

November: $$400,000$

December: $$1,000,000$

January: $$200,000$

On average, the cost of goods sold is $50$ w of sales. During this period, the

company expects inventory levels to remain constant. This means that

inventory purchases are expected to equal the amount of cost of goods sold.

$100\%$ of purchases are on credit. Of the credit purchases, $5\%$ are paid during

the month of the purchase, $65\%$ in the month following the purchase, and $30\%$

in the second month following the purchase.

Sales for September and Ottober of Year $1$ were $$400,000$ and $$500,000,$

respectively.

What is the forecasted amount of total cash payments for purchases in January?

$$230,000$

$$330,000$

$$385,000$

$$390,000$