Estimate Cash Disbursements: Serven Corporation, a merchandising company, has estimated its activity for next. June. Selected data from these estimates are as follows:

Variable selling and administrative costs include a charge for uncollectible accounts of 1 percent of sales and are paid in the month of sale. Total selling and administrative costs are $71.000 per month plus 15 percent of sales. Depreciation expense of $40,000 per month are included in fixed selling and administrative costs. All of the rest of selling and administrative costs are paid in cash.

Required: On the basis of the above data, what are the estimated cash disbursements from operations for June?

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Sales Cost of goods sold Increase in trade accounts receivable during month Change in accounts payable during month Increase in inventory during month $700,000 490,000 20,000 -0- 10,000