Problem:
Green Earth's monthly purchases are equal to 70 percent of the following month's sales. The accounts payable period for purchases is 30 days. All other expenses are paid when incurred. Assume each month has 30 days and August sales are $18,500. The company has compiled the following information.
- May - Sales14800, other expenses 2800, interest and taxes 650
- June - Sales 16100, other expenses 3000, interest and taxes 720
- July - Sales 17500, other expenses 3300, interest and taxes 880
Required:
Question: What is the projected amount of disbursements for the month of july?
Note: Explain all steps comprehensively.