Old Antique Store prepared the following budget information for the month of May: Sales are budgeted at $375,000. 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 $98,000 on April 30; an inventory increase of $12,000 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 $62,000. Depreciation for May is projected at $7,400. Old Antique's budgeted cost of inventory purchases for May is:

Multiple Choice

$125,000.

$187,500.

$229,900.

$262,000.

$250,000.