ABC Companys raw materials purchases for June, July, and August are budgeted at $50,000, $40,000, and $65,000, respectively. Based on past experience, ABC expects that 30% of a months raw material purchases will be paid in the month of purchase and 70% in the month following the purchase.

Required:

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

\begin{tabular}{|l|l|l|l|} \hline & June & July & August \\ \hline Budgeted raw material purchases & & & \\ \hline August cash payments: & & & \\ \hline Current month's purchases & & \\ \hline Prior month's purchases & & \\ \hline Total cash payments & & \\ \cline { 1 - 1 } & & & \\ \hline \hline \end{tabular}