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AB is preparing its cash budget for next year. The estimated accounts payable balance at the beginning of next year is $540,000. The budgeted purchases
AB is preparing its cash budget for next year. The estimated accounts payable balance at the beginning of next year is $540,000. The budgeted purchases for next year are $6,800,000, occurring evenly throughout the year. It is estimated that 75% of purchases will be on credit and the remainder will be for cash. The company pays for credit purchases in the month following purchase.
The budgeted cash payments to suppliers next year are?
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