ABC Companys raw materials purchases for June, July, and August are budgeted at $48,000, $38,000, and $63,000, respectively. Based on past experience, ABC expects that 60% of a months raw material purchases will be paid in the month of purchase and 40% in the month following the purchase.

Required: Prepare an analysis of cash disbursements from raw materials purchases for ABC Company for August.

	June	July	August
Budgeted raw material purchases
August cash payments:
Current months purchases
Prior months purchases
Total cash payments			$0