Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $281,000 for November, $321,000 for December, and $212,000 for January.
Collections are expected to be 75% in the month of sale and 25% in the month following the sale.
The cost of goods sold is 75% of sales.
The company desires to have an ending merchandise inventory at the end of each month equal to 90% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
Other monthly expenses to be paid in cash are $20,100.
Monthly depreciation is $22,000.
Ignore taxes.

Balance Sheet October 31
Assets
Cash $29,000
Accounts receivable 78,000
Merchandise inventory 189,675
Property, plant and equipment, net of $624,000 accumulated depreciation 1,006,000
Total assets $1,302,675
Liabilities and Stockholders' Equity
Accounts payable $241,000
Common stock 742,000
Retained earnings 319,675
Total liabilities and stockholders' equity $1,295,400

Accounts payable at the end of December would be:

a. $167,175
b. $240,750
c. $143,100
d. $24,075