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

• Sales are budgeted at $369,000. 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 $93,000 on April 30; an inventory increase of $19,000 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 $57,000.
• Depreciation for May is projected at $6,900.

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

Multiple Choice

• $123,000.

• $184,500.

• $218,400.

• $265,000.

• $246,000.