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				Jan. Year 2				Feb. Year 2				Mar. Year 2
	(Actual)				(Budgeted)				(Budgeted)				(Budgeted)
Cost of goods sold	$	98,000			$	158,000			$	198,000			$	138,000

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 $168,000. 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:

a. $169,700.

b. $147,900.

c. $177,000

d. $109,800.