The Following Information Pertains to the January Operating Budget for Casey

The following information pertains to the January operating budget for Casey Corporation.
-Budgeted sales for January $209,000 and February $108,000.
-Collections for sales are 50% in the month of sale and 50% the next month.
-Gross margin is 30% of sales.
-Administrative costs are $13,000 each month.
-Beginning accounts receivable is $28,000.
-Beginning inventory is $16,000.
-Beginning accounts payable is $70,000. (All from inventory purchases.)
-Purchases are paid in full the following month.
-Desired ending inventory is 20% of next month's cost of goods sold (COGS) .
For January, budgeted cash payments for purchases are ________.

A) $108,000
B) $75,600
C) $70,000
D) $49,700