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

	Dec Year 1 (actual)	Jan Year 2 (budgeted)	Feb year 2 (budgeted)	March year 2 (budgeted)
Cost of Goods sold	$94,000	$154,000	$194,000	$134,000

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 $164,000. 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

A. $107,400

B. $144.500

C. $173,000

D. $165,900