May Corporation, a Merchandising Firm, Has Budgeted Sales as Follows

May Corporation, a merchandising firm, has budgeted sales as follows for the third quarter of the year: Cost of goods sold is equal to 65% of sales.The company wants to maintain a monthly ending inventory equal to 130% of the Cost of Goods Sold for the following month.The inventory on June 30 is less than this ideal since it is only $65, 000.The company is now preparing a Merchandise Purchases Budget. The budgeted purchases for July are:

A) $52, 000
B) $63, 050
C) $47, 450
D) $91, 050