QUESTION 18 The following information pertains to the January operating budget for Casey Corporation Budgeted sales for January $209,000 and February $108,000 Collections for sales are 50% in the month of sale and 50% the next month Gross margin is 30% of sales Administrative costs are $13,000 each month Beginning accounts receivable is $28,000 Beginning inventory is $16,000 Beginning accounts payable is $70,000. (All from inventory purchases.) Purchases are paid in full the following month Desired ending inventory is 20% of next month's cost of goods sold (COGS). For January, budgeted cash payments for purchases are O $70,000 $108,000 O $75,600 $49,700