Metro, Inc. sells backpacks. The Company's accountant is preparing the purchases budget for the first quarter operations. Metro maintains ending inventory at 15% of the following month's expected cost of goods sold. Expected cost of goods sold for April is $90,000. All purchases are made on account with 30% of accounts paid in the month of purchase and the remaining 70% paid in the month following the month of purchase.

Sales February March January 50,000 Budgeted cost of goods sold Plus Desired ending inventory $70,000 $70,000 10,500 60,500 Inventory needed Less: Beginning inventory (10,000) $ 50,500 Required purchases Based on this Information the total cash pald in March to settle accounts payable is Multiple Choice $49,000. $21,900. $73,000 $70,900. February Sales January March Budgeted cost of goods sold Plus: Desired ending inventory $50,000 $70,000 $70,000 10,500 Inventory needed Less: Beginning inventory 60,500 (10,000) $50,500 Required purchases Based on this information the total amount of expected purchases for February is Multiple Choice $50,500. $73,000. $70,000. None of the answers is correct