It is November 1 of Year 1. Sales for Robert 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, Robert 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 October of Year 1 were 100,000 and 150,000, respectively.

What is the amount of payments made in cash for November purchases?

a. $97,500 b. $103,250 c. $68,250 d. $147,500