Woodstock Company has the following information related to its inventory sales and purchases for December Year $1$ and the first quarter of Year $2$:

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 $$156,000.$ 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

$$165,000$

$$137,700.$

$$158,300.$

$$102,600.$