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 $75,000. All purchases are made on account with 20% of accounts paid in the month of purchase and the remaining 80% paid in the month following the month of purchase.

Sales January February March Budgeted cost of goods sold $ 42,500 $ 55,000 $ 62,500 Plus: Desired ending inventory 8,250 Inventory needed 50,750 Less: Beginning inventory (8,500 ) Required purchases $ 42,250 Based on this information the amount of accounts payable appearing on the March 31 pro forma balance sheet is

Multiple Choice

$12,875.

$51,500.

$64,375.

None of the answers is correct.