Cash Payments for Operations. Drescher Paper Products, Inc. averages a gross profit of 30 percent. Sales for August were $500,000. The beginning inventory balance for August was $15,000 higher than the ending inventory balance. The accounts payable balance was $45,000 at the beginning of August and $52,000 at month end. The selling and administrative expenses are paid in the month in- curred. Such expenses follow the formula of 5 percent of sales plus $25,000 per month, including depreciation expense of $10,000.

Required: Compute the cash payments for operations during August.