Information pertaining to Yekstop Corp.'s sales revenue ispresented below:

	November				December				January
Cash sales	$	98,000			$	127,000			$	80,000
Credit sales		290,000				452,000				236,000
Total sales	$	388,000			$	579,000			$	316,000

Management estimates that 5% of credit sales are eventuallyuncollectible. Of the collectible credit sales, 65% are likely tobe collected in the month of sale and the remainder in the monthfollowing the month of sale. The company desires to begin eachmonth with an inventory equal to 70% of the sales projected for themonth. All purchases of inventory are on open account; 30% will bepaid in the month of purchase, and the remainder paid in the monthfollowing the month of purchase. Purchase costs are approximately60% of the selling prices.

Budgeted cash payments in December for November inventory purchasesby Yekstop Corp. are:

• $72,454.

• $93,906.

• $116,400.

• $162,960.

• $219,114.

Brownsville Novelty Store prepared the following budgetinformation for the month of May:

• Sales are budgeted at $385,000. All sales are on account and aprovision for bad debts is made for each month at three percent ofsales for the month.
• Inventory was $103,000 on April 30; an inventory increase of$17,000 is planned for May 31.
• All inventory is marked to sell at cost plus 40 percent.
• Estimated cash disbursements for selling and administrativeexpenses for the month are $67,000.
• Depreciation for May is projected at $7,900.

Brownsville's budgeted cost of goods sold (CGS) in May is:

Multiple Choice

• $110,000.

• $154,000.

• $221,900.

• $292,000.

• $275,000.