Farley Company Reported the Following Information for 2016 Cost of Goods Sold Is 35% of Sales

Multiple Choice

Farley Company reported the following information for 2016: $$\begin{array} { l c c c c c } & \text { September } & \text { October } & \text { November } & \text { December } & \text { January } \\\text { Budgeted sales } & \$ 240,000 & \$ 310,000 & \$ 290,000 & \$ 360,000 & \$ 200,000 \\\text { Budgeted purchases } & \$ 90,000 & \$ 120,000 & \$ 128,000 & \$ 144,000 & \$ 88,000\end{array}$$ Cost of goods sold is 35% of sales.
-Farley purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
-Accounts payable is used only for inventory acquisitions.
How much is the budgeted balance for Accounts Payable at October 31, 2016?

A) $48,000
B) $72,000
C) $102,000
D) $51,200