Ashland Corporation, a merchandising firm, is preparing its cash budget for October. The following information is available

Question:

Ashland Corporation, a merchandising firm, is preparing its 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?

Cash Budget
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment. Its primary purpose is to provide the...