1. Stone's Carpeting is preparing a cash flows budget for the year. The following information about quarterly purchases and expenses is available:

Stone's Carpeting data

1st

Quarter

2nd

Quarter

3rd

Quarter

4th

Quarter

Inventory purchases

$72,000

$80,000

$69,000

$120,000

Facilities costs

20,000

20,000

20,000

20,000

Wages and salaries

27,000

32,000

25,000

44,000

Depreciation

6,000

6,000

6,000

6,000

1. Based on her review of last year's experience, Ms. Stone determined that 20% of the inventory items were paid for in the month purchased, and the remaining 80% were paid for in the following month. Generally, all other cash expenses are paid in the period incurred. What is the total amount of expected cash payments during the second quarter?

$131,600

$129,200

$125,600

$123,200

$119,600