Old Antique Store prepared the following budget information for the month of May:

Sales are budgeted at $$330,000.$ All sales are on account and a provision for bad debts is made for each month at three percent of sales for the month.

Inventory was $$89,000$ on April $30$; an inventory increase of $$16,000$ is planned for May $31.$

All inventory is marked to sell at cost plus $50$ percent.

Estimated cash disbursements for selling and administrative expenses for the month are $$53,000.$

Depreciation for May is projected at $$6,500.$

Old Antique's budgeted cost of inventory purchases for May is:

Multiple Choice

$$110,000.$

$$165,000.$

$$203,500.$

$$236,000.$

$$220,000.$