Estimate Cash Disbursements
Ashland Corporation, a merchandising firm, is preparing its cash budget for October. The following information is available concerning its inventories:
Inventories at beginning of October |
$135,000 |
Estimated purchases for October |
660,000 |
Estimated cost of goods sold for October |
675,000 |
Estimated payments in October for purchases in September |
165,000 |
Estimated payments in October for purchases prior to September |
30,000 |
Estimated payments in October for purchases in October |
70% |
Required
What are the estimated cash disbursements in October?