Payne Company provided the following information relevant to its inventory sales and purchases for December Year 1 and the first quarter of Year 2 Dec. Year Jan. Year 2 Feb. Year 2 Mar. Year 2 1 (Actual) (Budgeted) (Budgeted) (Budgeted) $96,000 $156,000 $196,000 $ 136,000 Cost of goods sold Desired ending inventory levels are 25% of the following month's projected cost of goods sold. The company purchases all inventory on account January Year 2 budgeted purchases are $166,000. The normal schedule for inventory payments is 60% payment in month of purchase and 40% payment in month following purchase. Budgeted cash payments for inventory in February Year 2 would be Multiple Choice $146.200 3167,800 January Year 2 budgeted purchases are $166,000. The normal schedule for inventory payments is 60% payment in month of purchase and 40% payment Desired ending Inventory levels are 25% of the following month's projected cost of goods sold. The company purchases of inventory on account In month following purchase Budgeted cash payments for inventory in February Year 2d be: Multiple Choice $546,200 $167.800 $108.600 $175,000