KNF, Inc Pays Its Creditors in 45 Days

KNF, Inc. pays its creditors in 45 days. Inventory is purchased one quarter prior to its sale. Cost of goods sold is equal to 50% of the selling price. Each quarter the total that KNF must pay on its
Accounts is equal to:

A) 50% of the prior quarter sales plus 50% of the current quarter sales.
B) The beginning accounts payable balance plus 50% of the prior quarter sales.
C) The beginning accounts payable balance plus 25% of the prior quarter sales.
D) 25% of the prior quarter purchases plus 25% of the current quarter purchases.
E) 25% of the current quarter sales plus 25% of the prior quarter sales.