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