It is November 1 of Year 1. SALES for Frasier Company for November and December of Year 1 and January of Year 2 are forecasted to be as follows: November, 400,000; December 600,000; January, 200,000 On average, cost of goods sold is 70% of sales.

During this period, Frasier Company expects inventory levels to remain constant. This means that inventory purchases are expected to equal the amount of cost of goods sold. 40% of purchases are for cash. 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 October of Year 1 were 100,000 and 150,000, respectively.

What is the forecasted amount of total cash payments for purchases in January of Year 2? (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.)

a. $163,800

b. $274,400

c. $218,400

d. $168,000