Barrett's Fashions Forecasts Sales of $125,000 for the Quarter Ended

Barrett's Fashions forecasts sales of $125,000 for the quarter ended December 31. Its gross profit rate is 20% of sales, and its September 30 inventory is $32,500. If the December 31 inventory is targeted at $41,500, budgeted purchases for the fourth quarter should be:

A) $134,000.
B) $109,000.
C) $91,500.
D) $25,000.
E) $91,000.