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Payne Company provided the following information relevant to its inventory sales and purchases for December...

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Accounting

Payne Company provided the following information relevant 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 $ 78,000 $ 138,000 $ 178,000 $ 118,000

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 $172,000. 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:

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