Super Drive, a computer disk storage and back-up company, uses accrual accounting. The company's Statement of Financial Position for the year ended November 30, is as follows:

Super Drive

Statement of Financial Position

November 30

Assets   

Cash                                       $52,000

Accounts receivable, net.                  150,000

Inventory                                  315,000

Property, plant and equipment           1,000,000

Total assets                             $1,517,000

Liabilities and Equity   

Accounts payable                         $175,000

Common stock                             900,000

Retained earnings                          442,000

Total liabilities and shareholders equity  $1,517,000

Additional information regarding Super Drive's operations include the following:

l   Sales are budgeted at $520,000 for December and $500,000 for January of the next year.

l   Collections are expected to be 60% in the month of sale and 40% in the month following the sale.

l   80% of the disk drive components are purchased in the month prior to the month of sale, and 20% are purchased in the month of sale. Purchased components are 40% of the cost of goods sold.

l   Payment for the components is made in the month following the purchase.

l   Cost of goods sold is 80% of sales.

The projected balance in accounts payable on December 31 is

A. $326,400

B. $416,000

C. $161,280

D. $166,400