Question - At the end of August there was $190,000 Jn Inventory. At the end of September there was $180,000 In Inventory.
During August, $100,000 was paid to suppliers for purchases made In August and $10,000 was pald for purchases made prior to August.
September's cost of goods sold was $420,000.
The company pays for 80% of a month's purchases In the month of the purchase and pays 20% In the month following the purchase.
Required - Calculate the total amount of cash disbursements for purchases made In September.